Rev. Rul. 87-68, 1987-2 C.B. 213.

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; 1.48.)

  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 August 1987 are as follows:

              Period for Compounding
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   7.16%       7.04%      6.98%    6.94%
  110% AFR   7.89%       7.74%      7.67%    7.62%
  120% AFR   8.63%       8.45%      8.36%    8.30%
  Mid-Term
       AFR   8.19%       8.03%      7.95%    7.90%
  110% AFR   9.02%       8.83%      8.73%    8.67%
  120% AFR   9.87%       9.64%      9.53%    9.45%
Long-Term
       AFR   8.58%       8.40%      8.31%    8.26%
  110% AFR   9.45%       9.24%      9.14%    9.07%
  120% AFR  10.33%      10.08%      9.96%    9.87%
  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 August 1987 are as follows:
              Period for Compounding
            Annual  Semiannual  Quarterly  Monthly
Short-Term
       AFR   4.51%       4.46%      4.44%    4.42%
  Mid-term
       AFR   5.68%       5.60%      5.56%    5.54%
Long-term
       AFR   7.11%       6.99%      6.93%    6.89%
  For purposes of section 382 of the Code, the adjusted federal long-term rate and the long-term tax-exempt rate for August 1987 are as follows:
Adjusted federal long-term rate for August       7.11%
Long-term tax-exempt rate for ownership changes
   during August (the highest of the adjusted
   federal long-term rates for the current
   month and the prior two months)               7.46%

Rev. Rul. 87-68, 1987-2 C.B. 213