Consider a firm whose 1-year zero-coupon bonds currently yield 10.3%, and 2-year bonds currently yield 13.5%. The yields on 1-year and 2-year zero-coupon Treasury bonds (i.e., the 1- year and 2-year spot rates) are 6.1% and 8.7% respectively. Assume that bondholders do not expect to recover anything in the case of default. Assume a periodicity of 1.

What is this firms implied cumulative probability of default?