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A portfolio manager is studying the relationship between the 1-year default probability of a longevity bond (issued by a life insurance company) and equity market returns. The manager has developed the following joint probability table based on preliminary research:
Based on the table, what is the conditional probability that the longevity bond defaults within one year, given that the equity market declines by 20% over that same period?

A
3.00%
B
4.00%
C
7.89%
D
10.53%