Suppose That the Cumulative Probability of a Company Defaulting by Years

Multiple Choice

Suppose that the cumulative probability of a company defaulting by years one,two,three and four are 3%,6.5%,10%,and 14.5%,respectively.What is the probability of default in the fourth year conditional on no earlier default?

A) 4.5%
B) 5.0%
C) 5.5%
D) 6.0%