Rev. Rul. 87-16, 1987-1 C.B. 254, 1987-10 I.R.B. 13.

Published:  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 March 1987 are as follows:

              PERIOD FOR COMPOUNDING
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   6.22%       6.13%      6.08%    6.05%
  110% AFR   6.85%       6.74%      6.68%    6.65%
  120% AFR   7.50%       7.36%      7.29%    7.25%
Mid-Term
       AFR   6.97%       6.85%      6.79%    6.75%
  110% AFR   7.68%       7.54%      7.47%    7.42%
  120% AFR   8.39%       8.22%      8.14%    8.08%
Long-Term
       AFR   7.49%       7.35%      7.28%    7.24%
  110% AFR   8.25%       8.09%      8.01%    7.96%
  120% AFR   9.01%       8.82%      8.72%    8.66%
  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 March 1987 are as follows:
              PERIOD FOR COMPOUNDING
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   3.77%       3.74%      3.72%    3.71%
Mid-Term
       AFR   4.71%       4.66%      4.63%    4.62%
Long-term
       AFR   6.06%       5.97%      5.93%    5.90%
  For purposes of section 382 of the Code, the adjusted federal long-term rate and the long-term tax-exempt rate for March 1987 are as follows:
Adjusted federal long-term rate for February     6.06%
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)                  6.15%

Rev. Rul. 87-16, 1987-1 C.B. 254, 1987-10 I.R.B. 13