Rev. Rul. 87-42

1987-1 C.B. 256, 1987-22 I.R.B..

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.)

  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 1987 are as follows:

              PERIOD FOR COMPOUNDING
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   7.21%       7.08%      7.02%    6.98%
  110% AFR   7.94%       7.79%      7.72%    7.67%
  120% AFR   8.68%       8.50%      8.41%    8.35%
Mid-Term
       AFR   8.25%       8.09%      8.01%    7.96%
  110% AFR   9.10%       8.90%      8.80%    8.74%
  120% AFR   9.95%       9.71%      9.59%    9.52%
Long-Term
       AFR   8.67%       8.49%      8.40%    8.34%
  110% AFR   9.56%       9.34%      9.23%    9.16%
  120% AFR  10.45%      10.19%     10.06%    9.98%
  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 June 1987 are as follows:
              PERIOD FOR COMPOUNDING
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   5.21%       5.14%      5.11%    5.09%
Mid-term
       AFR   6.06%       5.97%      5.93%    5.90%
Long-term
       AFR   7.40%       7.27%      7.21%    7.16%
  For purposes of section 382 of the Code, the adjusted federal long-term rate and the long-term tax-exempt rate for June 1987 are as follows:
  Adjusted federal long-term rate for June              7.40%
  Long-term tax-exempt rate for ownership changes during June (thehighest of the adjusted federal long-term rates for the current monthsand the prior two months)                       7.40%

Rev. Rul. 87-42, 1987-1 C.B. 256, 1987-22 I.R.B.