choosing duration of swap

CFA Level III Derivatives
#1

if you’re given a choice of two swaps 4Y swap, Ql’y pmt or 3Y swap Semi annual pmt, (pay float rec fixed) to increase the duration of a portfolio, which do you choose?

Do you always choose the higher duration swap?

What if it was pay fixed, receive float to decrease the duration?

#2

The longer the net duration, the lower the notional value. Generally, lower notional value is better: lower credit risk.

#3

perfect thanks!

#4

My pleasure.