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Curl Curl Bank has made a one-year loan to Slippery Wave. a firm that manufactures surfboards. The estimated probability of default ot this loan is The estimated loan recovery rate upon loan default is The bank has also made a two-year loan to Slippery Wave that provides a return Of per annum if the loan is not defaulted. And the bank Will lose all the claims on principal and interests upon loan default. The yield is 2% per annum for the I-year maturity government bond. Based on the prices Of I-year and 2-year maturity government bond prices, the forward rate for the 2nd year is 4% per annum. What is the cumulative probability of repayment (i.e. not default) of Slippery Wave over the two years? (please choose the closest answer) Select one: 0.8598 0.8767 0.9363 0.9644 0.9879