Can I get the answer and explain step by step. thanks

pT'CSC'ILL (11 pan UJ LILC CIEC'I'C'LSC'. Exercise 1: Consider the following rating migration matrix. Risk grade at end of year 1 2 3 D Risk grade at 1 0.10 0.04 0.01 beginning of 2 0.10 0.81 0.03 year 3 0.03 0.78 0.08 a) Complete the rating migration matrix, and explain how you do this. b) What is the probability for a rm with risk grade '2' to default over the next period? 0) Calculate the probability for a rm with risk grade '2' to default over the next two periods. (:1) Calculate the probability for a rm With risk grade '3' to reach risk grade '1' over the next two periods