Rev. Rul. 87-11, 1987-1 C.B. 253.

Published: February 2, 1987

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

(Also Sections 280G, 382, 383, 467, 468, 483, 1273, 1288, 7872; 1.483-1.)

  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 February 1987 are as follows:

              PERIOD FOR COMPOUNDING
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   6.20%       6.11%      6.06%    6.03%
  110% AFR   6.83%       6.72%      6.66%    6.63%
  120% AFR   7.46%       7.33%      7.26%    7.22%
Mid-Term
       AFR   6.94%       6.82%      6.76%    6.73%
  110% AFR   7.64%       7.50%      7.43%    7.39%
  120% AFR   8.35%       8.18%      8.10%    8.04%
Long-Term
       AFR   7.39%       7.26%      7.20%    7.15%
  110% AFR   8.15%       7.99%      7.91%    7.86%
  120% AFR   8.90%       8.71%      8.62%    8.56%
  For purposes of section 1288 of the Code, the short-term, mid- term, and long-term adjusted federal rates (adjusted AFR) for the month of February 1987 are as follows:
              PERIOD FOR COMPOUNDING
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   3.93%       3.89%      3.87%    3.86%
Mid-Term
       AFR   4.88%       4.82%      4.79%    4.77%
Long-term
       AFR   6.15%       6.06%      6.01%    5.98%
  For purposes of section 382 of the Code, the adjusted federal long-term rate and the long-term tax-exempt rate for February 1987 are as follows:
Adjusted federal long-term rate for February     6.15%
Long-term tax-exempt rate for ownership changes
during February (the highest of the adjusted
federal long-term rates for the current month
and the prior two months)                        6.35%

Rev. Rul. 87-11, 1987-1 C.B. 253.