Rev. Rul. 86-86

1986-2 C.B. 147, 1986-27 I.R.B. 34.

Published: July 7, 1986

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

(Also Sections 280G, 467, 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 July

1986 are as follows:

              PERIOD FOR COMPOUNDING
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   7.23%       7.10%      7.04%    7.00%
  110% AFR   7.96%       7.81%      7.74%    7.69%
  120% AFR   8.70%       8.52%      8.43%    8.37%
Mid-Term
       AFR   8.02%       7.87%      7.79%    7.74%
  110% AFR   8.85%       8.66%      8.57%    8.51%
  120% AFR   9.66%       9.44%      9.33%    9.26%
Long-Term
       AFR   8.04%       7.88%      7.80%     7.75
  110% AFR   8.86%       8.67%      8.58%    8.52%
  120% AFR   9.68%       9.46%      9.35%    9.28%

Rev. Rul. 86-86, 1986-2 C.B. 147, 1986-27 I.R.B. 34.