PRMIA Operational Risk Manager (ORM) Exam 8010 Question # 42 Topic 5 Discussion

PRMIA Operational Risk Manager (ORM) Exam 8010 Question # 42 Topic 5 Discussion

8010 Exam Topic 5 Question 42 Discussion:
Question #: 42
Topic #: 5

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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