Rev. Rul. 87-55

1987-2 C.B. 212, 1987-27 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,.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 July 1987 are as follows:

              PERIOD FOR COMPOUNDING
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   7.50%       7.36%      7.29%    7.25%
  110% AFR   8.26%       8.10%      8.02%    7.97%
  120% AFR   9.02%       8.83%      8.73%    8.67%
Mid-Term
       AFR   8.56%       8.38%      8.29%    8.24%
  110% AFR   9.43%       9.22%      9.12%    9.05%
  120% AFR  10.31%      10.06%      9.94%    9.86%
Long-Term
       AFR   8.91%       8.72%      8.63%    8.57%
  110% AFR   9.82%       9.59%      9.48%    9.40%
  120% AFR  10.73%      10.46%     10.33%   10.24%
  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 July 1987 are as follows:
              PERIOD FOR COMPOUNDING
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   4.82%       4.76%      4.73%    4.71%
Mid-Term
       AFR   6.04%       5.95%      5.91%    5.88%
Long-Term
       AFR   7.46%       7.33%      7.26%    7.22%
  For purposes of section 382 of the Code, the adjusted federal long-term rate and the long-term tax-exempt rate for July 1987 are as follows:
  Adjusted federal long-term rate for July          7.46%
  Long-term tax-exempt rate for ownership changes during July (the highest of the adjusted federal long-term rates for the current month and the prior two months)               7.46%
  As described in Rev. Rul. 86-17, 1986-1 C.B. 377, for purposes of section 7872(e)(2) of the Code, the 'blended annual rate' for 1987 is 6.81 percent.

Rev. Rul. 87-55, 1987-2 C.B. 212, 1987-27 I.R.B.