A corporation makes a $100,000 term loan to a shareholder. The stated principal amount of the loan is payable in 10 years. The test rate used to determine if the loan is a below-market loan is the

• A.
• Short-term applicable federal rate as of the day the loan is made.
• B.
• Mid-term applicable federal rate as of the day the loan is made.
• C.
• Long-term applicable federal rate as of the day the loan is made.
• D.
• Adjusted applicable federal rate as of the day the loan is made.