from Yield Curve

You can create a spot curve by using the Treasury Yield Curve
A spot curve created in this way is called the Treasury Spot Curve or Spot Rate Treasury Curve.
This curve shows the yield to maturity of zero-coupon treasury securities.

Constructing the Curve using Coupon Paying Bonds

How do we construct the zero-coupon yield curve from coupon paying bonds.
We can do this using a process called Bootstrapping
Lets suppose that we have the following US Treasury Bills and Notes
The chart shows these yields plotted against their maturity dates.

1 Year Spot Rate

We already know the 0.25 and 0.5 spot rates since these Treasury Bills are already zero-coupon bonds.
So lets calculate what the 1 year spot rate would be.
We can calculate this using a method called bootstrapping.

1.5 Year Spot Rate