Choice of swaps

CFA Level III
#1

Let say you have a bond duration of 5

You want to reduce that duration to a target of 3

Are we supposed to pick up the swap that further decrease duration? Because I would have choosen the one that brings the duration closer to the target 3, by chosing duration -2.125

But answer picked -3.625, whcih further reduce the portfolio duration lower than 2

What am I missing?

#2

Yes, if lowering duration choose swap that has the lowest (most negative) duration. This swap will require a lower notional pincipal amount.

#3

thank you