Rev. Rul. 86-50

1986-1 C.B. 296, 1986-14 I.R.B. 9.

Published: April 7, 1986

Section 1274.-Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property (Also Sections 468, 483, 7872.)

  For purposes of section 1274(d) of the Internal Revenue Code, the short-term, mid-term, and long-term applicable federal rates (AFR) for the month of April

1986 are as follows:

PERIOD FOR COMPOUNDING

Annual Semiannual Quarterly Monthly
______ __________ _________ ________

Short-Term
__________

AFR 7.60% 7.46% 7.39% 7.35%
110% AFR 8.38% 8.21% 8.13% 8.07%
120% AFR 9.15% 8.95% 8.85% 8.79%

Mid-Term
________

AFR 8.08% 7.92% 7.84% 7.79%
110% AFR 8.90% 8.71% 8.62% 8.56%
120% AFR 9.73% 9.50% 9.39% 9.32%

Long-Term
_________

AFR 8.52% 8.35% 8.26% 8.21%
110% AFR 9.40% 9.19% 9.09% 9.02%
120% AFR 10.27% 10.02% 9.90% 9.82%