A Bond Investor Has a 99 Percent Chance of Receiving

A bond investor has a 99 percent chance of receiving all of her promised payments on a particular bond issue in the first year of holding the bond,but only a 98 percent chance in the second year,and a 97 percent chance in the third year and beyond. What is the cumulative default probability over the first three years she holds the bond?

A) 3.75 percent
B) 4.24 percent
C) 5.89 percent
D) 6.85 percent
E) 7.33 percent