According to a credit rating agency, Moody's, the chance that a B-graded municipal bond defaults in a given year is 12%. Suppose that a hedge fund company currently owns 10 (all different) B-grade municipal bonds, and the default of one municipal bond is independent of other bonds.

What is the probability that 3 or fewer bonds will default in a given year?

A. 0.85

B. 0.92

C. 0.98

D. 0.08