Rev. Rul. 86-64

1986-1 C.B. 297, 1986-19 I.R.B. 6.

Published: May 12, 1986

Section 1274.-Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property (Also Sections 467, 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 May

1986 are as follows:

                    Period for Compounding
                    ______________________

              Annual    Semiannual     Quarterly     Monthly
              ______    __________     _________     _______

Short-Term
__________

      AFR      6.95%       6.83%         6.77%        6.73%
110% AFR      7.65%       7.51%         7.44%        7.40%
120% AFR      8.37%       8.20%         8.12%        8.06%

Mid-Term
________

      AFR      7.43%       7.30%         7.23%         7.19%
110% AFR      8.19%       8.03%         7.95%         7.90%
120% AFR      8.95%       8.76%         8.67%         8.60%

Long-Term
_________

      AFR      7.81%       7.66%         7.59%         7.54%
110% AFR      8.61%       8.43%         8.34%         8.29%
120% AFR      9.40%       9.19%         9.09%         9.02%

Rev. Rul. 86-64, 1986-1 C.B. 297, 1986-19 I.R.B. 6.