The spread on a one-year BBB-rated bond relative to the risk-free Treasury of similar maturity is 2%. It is estimated that the contribution to this spread by all noncredit factors (e.g., liquidity risk, taxes) is 0.8%. Assuming the loss given default rate for the underlying credit is 60%, what is, approximately, the implied default probability for this bond?
A. 3.33%
B. 5.00%
C. 3.00%
D. 2.00%