Rev. Rul. 86-79

1986-1 C.B. 297, 1986-22 I.R.B. 7.

Published: June 2, 1986

Section 1274.-Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property (Also Section 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 June

1986 are as follows:

                        PERIOD FOR COMPOUNDING

               Annual      Semiannual     Quarterly Monthly
               ______      __________     _________ _______

Short-Term
__________

      AFR       6.74%          6.63%         6.58%         6.54%
110% AFR       7.42%          7.29%         7.22%         7.18%
120% AFR       8.12%          7.96%         7.88%         7.83%

Mid-Term
________

      AFR       7.32%          7.19%          7.13%        7.08%
110% AFR       8.07%          7.91%          7.83%        7.78%
120% AFR       8.82%          8.63%          8.54%        8.48%

Long-Term
_________

      AFR       7.64%          7.50%          7.43%        7.39%
110% AFR       8.42%          8.25%          8.17%        8.11%
120% AFR       9.20%          9.00%          8.90%        8.84%