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A bond has the following conditional default probabilities: 1.5% in Year 1; 2.8% in Year 2; 3.9% in Year 3; and 6.1% in Year 4. What is the probability that the bond survives for 3 years and then defaults during Year 4?
A
4.9%
B
5.7%
C
6.1%
D
6.9%