If the Cumulative Mortality Rate in Year 3 Is 3

Multiple Choice

If the cumulative mortality rate in year 3 is 3.46 percent for the B-rated loan, what is its yearly mortality rate in year 3?

A) 1.25 percent.
B) 1.21 percent.
C) 1.00 percent.
D) 0.90 percent.
E) 0.875 percent. [Refer to: 10-112]