3. (10 points) The following is a schedule of historical defaults (yearly and cumulative) experienced by a manager on a portfolio of commercial and mortgage loans. Years after Issuance Loan Type 1 Year 2 Years 3 Years 4 Years 5 Years Commercial Annual 0.00% 0.50% 0.30% default Cumulative 0.10% 0.80% default Mortgage Annual 0.10% 0.25% 0.60% 0.80% default Cumulative 1.64% default a. (5 points) Complete the blank spaces in the table. b. (5 points) Find the probabilities of the event that each type of loan will not be in default after 5 years