Applicable Federal Rates for 2009

These are some of the rates published each month by the Internal Revenue Service in accordance with section 1274(d) of the Internal Revenue Code.

The federal "short-term rate" is determined from a one-month average of the market yields from marketable obligations of the United States with maturities of 3 years or less. The "mid-term rate" is determined from obligations with maturities of more than 3 years but not more than 9 years, and the "long-term rate" is determined from obligations with maturities of more than 9 years.

These rates are used for a number of different purposes under the Internal Revenue Code, including the determinations of original issue discount and unstated interest and the gift tax and income tax consequences of below-market loans under section 7872. (However, interest on demand loans with a fixed principal amount outstanding for an entire year can be determined using the "blended annual rate" described in section 7872(e)(2)(A) of the Internal Revenue Code.)

Short-Term Rates for 2009

Month	Annual	Semiann.	Quarterly	Monthly
Jan-2009	0.81%	0.81%	0.81%	0.81%
Feb-2009	0.60%	0.60%	0.60%	0.60%
Mar-2009	0.72%	0.72%	0.72%	0.72%
Apr-2009	0.83%	0.83%	0.83%	0.83%
May-2009	0.76%	0.76%	0.76%	0.76%
Jun-2009	0.75%	0.75%	0.75%	0.75%
Jul-2009	0.82%	0.82%	0.82%	0.82%

Mid-Term Rates for 2009

Month	Annual	Semiann.	Quarterly	Monthly
Jan-2009	2.06%	2.05%	2.04%	2.04%
Feb-2009	1.65%	1.64%	1.64%	1.63%
Mar-2009	1.94%	1.93%	1.93%	1.92%
Apr-2009	2.15%	2.14%	2.13%	2.13%
May-2009	2.05%	2.04%	2.03%	2.03%
Jun-2009	2.25%	2.24%	2.23%	2.23%
Jul-2009	2.76%	2.74%	2.73%	2.72%

Long-Term Rates for 2009

Month	Annual	Semiann.	Quarterly	Monthly
Jan-2009	3.57%	3.54%	3.52%	3.51%
Feb-2009	2.96%	2.94%	2.93%	2.92%
Mar-2009	3.52%	3.49%	3.47%	3.46%
Apr-2009	3.67%	3.64%	3.62%	3.61%
May-2009	3.58%	3.55%	3.53%	3.52%
Jun-2009	3.88%	3.84%	3.82%	3.81%
Jul-2009	4.36%	4.31%	4.29%	4.27%