The objective (to me) appeared to enter into the swap that brings your duration from 4.2 to 6, so I went with Cairo since entering into the pay floating received fixed got you as close to 6 without going over (5.575, admittedly low). I ended up getting this wrong as the answer said the intention was to enter into the swap with the lowest notional. I didn’t see this laid out in the question, but I saw on this thread that the CFAI’s position is to always go for the swap with the lowest duration. Is “going for the lowest notional” always the approach to take on these questions?
I disagree with the message that CFAI wants lowest or highest. In the mocks and questions I’ve seen from the CFAI, the vignette will tell you.
“Manager A prefers the swap that would produce the lowest[highest] notion”.
They will be clear and tell you. All you have to do is read the vignette.