The risk neutral dynamics of the short rate evolve according to a binomial lattice model. Assume the following: the current short rate is 4%, the period length of the lattice is 1 year, the rate moves up by a multiple of u=1.25 or down by a multiple u=.8, and the risk neutral probabilities are 1=.5 for an up move and 1-q=.5 for a down move.

Calculate the price of a floating rate note paying annual coupons equal to the short rate at the start of the period and maturing in 2 years (assume face value is 100).