Consider a firm whose 1-year zero-coupon bonds currently yield 5.2% and 2-year zero-coupon bonds yield 8%. The Treasury yield on 1-year zero-coupon bonds is 2% and 2-year zero-coupon bonds is 4.3%. Assume that the recovery rate expected by bondholders is 60% at the end of year 1 and 60% at the end of year 2. Also assume periodicity of 1.

a.) What is this firm's 1-year marginal probability of default?

b.) What is the firm's 2-year marginal probability of default?

c.) What is the firm's 2-year cumulative probability of default?

d.) If the firm's 3-year marginal probability of default is 1%, what is the firm's 3-year cumulative probability of default?