Consider the following data in the table below. Assume that if the corporate bond defaulted, no payment is expected. Calculate the probability of default on the one-year corporate bond in the first year.

	Spot 1-year	Spot 2-year
T-strip	3.5%	12.6%
AAA corporate bond	6.2%	17.1%

a. 2.54%

b. 9.31%

c. 3.84%

d. 29.12%