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The probability of default of a security during the first year after issuance is 3%,...

The probability of default of a security during the first year after issuance is 3%, that during the second and third years is 4%, and during the fourth year is 5%. What is the probability that it would not have defaulted at the end of four years from now?

A.

12.00%

B.

88.53%

C.

88.00%

D.

84.93%

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