The Following Represents Two Yield Curves -What Is the Probability That Two-Year B-Rated Corporate Debt Will

Multiple Choice

The following represents two yield curves.
$\begin{array} { | l r r | } \hline \text { Maturity } & \text { Pure Discount Treasury Yields } & \text { B-rated Carparate Band } \\\hline & & \text { Yields (Pure Discaun Bonds) } \\1 \text { year } & 3 \text { percent } & 6\text { percent }\\2 \text { year } & 6 \text { percent }& 10 \text { percent } \\20 \text { year } & 12 \text { percent }& 17 \text { percent } \\\hline\end{array}$
-What is the probability that two-year B-rated corporate debt will be fully repaid?

A) 92.9 percent.
B) 95.6 percent.
C) 97.2 percent.
D) 7.10 percent.