How Can We Help?
< Back
You are here:
Print

Interest Rate

Posted
Last Updated On
ByJim

L1: Interest RateHow did Rev Ruling 2002-62 decide the mid term rate would be defined as a 5 year rate? It seems 8-15 years is mid term, so a 10 yearrate would seem reasonable? Is there any possibilty that someone has misdefined this?
Thanks2004-01-12 15:42, By: Jim, IP: [65.28.109.231]

L2: Interest RateSimple answer – NO! You could always try and get a PLR for a higher rate, but I really think you would be wasting your time and money.
2004-01-12 15:47, By: Gfw, IP: [172.16.1.70]

L2: Interest RateHello Bob:
No one decided on the 5 year rate. Instead RR 2002-62 says to use no more than 120% of the mid-term applicable federal rate as defined by IRC 1274(d). Go read 1274(d) & you will learn that the mid-term rate is the average market yield for US Treasury securities with a maturily of 3 to 9 years. Now alot of us do think that the use of the mid-term rate is wrong; however there is no “mis-definition” going on.
TheBadger
wjstecker@wispertel.net
2004-01-12 15:50, By: TheBadger, IP: [38.116.134.130]

Table of Contents