In order to calculate the 2 yr spot rate, I understand that I have to construct a portfolio with the given bonds to effectively create the same payoffs as a zero coupon bond. What confuses me in the solutions is how they managed to come up with 25 2yr bonds and a short position in a 1yr treasury bill. Where did the 25 come from?

Also could someone please clarify that 2yr spot rate is the same as 2 yr forward rate?

Many thanks!!!

What spot and forward rates are embedded in the following Treasury bonds? The price of one-year strips is 93.46%. Assume for simplicity that bonds make only annual payments. We make use of the one-year Treasury bill information in order to determine the one-year spot rate as follows: The following position provides a case payoff only in year two: a long position in twenty-five two-year bonds and a short position in one-year Treasury bill. Cash flows for this position are: What spot and forward rates are embedded in the following Treasury bonds? The price of one-year strips is 93.46%. Assume for simplicity that bonds make only annual payments. We make use of the one-year Treasury bill information in order to determine the one-year spot rate as follows: The following position provides a case payoff only in year two: a long position in twenty-five two-year bonds and a short position in one-year Treasury bill. Cash flows for this position are