Rev. Rul. 86-94

1986-2 C.B. 147, 1986-31 I.R.B. 20.

Published: August 4, 1986

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

(Also Section 280G, 467, 468, 7872)

  For purposes of section 1274(d) of the Internal Revenue Code, the short-term, mid-term applicable federal rates (AFR) for the month of August 1986 are as follows:

              PERIOD FOR COMPOUNDING
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   6.79%       6.68%      6.63%    6.59%
  110% AFR   7.49%       7.35%      7.28%    7.24%
  120% AFR   8.18%       8.02%      7.94%    7.89%
Mid-Term
       AFR   7.44%       7.31%      7.24%    7.20%
  110% AFR   8.20%       8.04%      7.96%    7.91%
  120% AFR   8.96%       8.77%      8.68%    8.61%
Long-Term
       AFR   7.51%       7.37%      7.30%    7.26%
  110% AFR   8.27%       8.11%      8.03%    7.98%
  120% AFR   9.04%       8.84%      8.74%    8.68%

  As described in Rev. Rul. 86-17, 1986-6 I.R.B. 26, for purposes of section

7872(e)(2) of the Code, the 'blended annual rate' for 1986 is 7.77 percent.

Rev. Rul. 86-94, 1986-2 C.B. 147, 1986-31 I.R.B. 20.