You assume the following information regarding the risk free interest rates and a debt-issuing (with a face value of $1,000) corporate respective interest rates:

Years 1 2 3 4 5

Risk Free Interest Rate 4% 4% 4% 4% 4%

Corporate Interest Rate 4.5% 5% 5.5% 6% 6.5%

What are the approximate cumulative expected default losses (in %) after 5 years?

	13.75%
	9.75%
	15.75%
	17.75%
	11.75%