The term “original issue discount” has the meaning given to such term by section 1273(a) without regard to paragraph (3) thereof. In applying section 483 or 1274, under regulations prescribed by the Secretary, appropriate adjustments shall be made to the applicable Federal rate to take into account the tax exemption for interest on the obligation.
The term “tax-exempt obligation” has the meaning given to such term by section 1275(a)(3).
In applying this section to obligations with maturity of 1 year or less, rules similar to the rules of section 1283(b) shall apply.