magine that you have two bonds that you are considering pooling and tranching into a CDO. Each bond pays out $1,000 at t

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magine that you have two bonds that you are considering pooling
and tranching into a CDO. Each bond pays out $1,000 at the end of
the period and each bond will default 10% of the time. In case of
default, each bond pays nothing. The bond defaults are independent.
Suppose that you take two identical junior tranches from the first
round CDO and pool and tranche them into a CDO-squared. The default
probability of the junior tranche from CDO-squared is
____.