Consider the following hypothetical spot curve: Maturity (years) Spot Rate (%) 0.5 3.00 1.0 3.25 1.5 3.60 2.0 3.90

Maturity (yr)	Spot Rate (%)
0.5	3.00
1.0	3.25
1.5	3.60
2.0	3.90

Use the spot rates to price a 4% coupon, 2-year note and answer the following questions: a. What is the price of this security?

b. What is the yield to maturity of the note?

c. What is the market-value-weighted yield of a portfolio of zero-coupon bonds with identical cash flows that replicates the 2-year note? Assume there is no arbitrage.

d. How should the portfolio yield be computed?