The Following Is Information on Current Spot and Forward Term

The following is information on current spot and forward term structures (assume the corporate debt pays interest annually) : $$\begin{array} { | l | l | l | c | } \hline & \text { Spot 1 Year } & \text { Spot 2 Year } & \begin{array} { l } \text { (1-year maturity) } \\\text { Forward 1-year }\end{array} \\\hline \text { Treasury } & 3.0 \text { percent } & 4.75 \text { percent } & \mathrm { X } \\\hline \text { BBB Corporate Debt } & 7.5 \text { percent } & 9.15 \text { percent } & \mathrm { Y } \\\hline\end{array}$$
-The cumulative probability of repayment of BBB corporate debt over the next two years is

A) 99.84 percent.
B) 92.10 percent.
C) 4.45 percent.
D) 95.70 percent.
E) 7.90 percent.