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The following excerpt is taken from an article titled Denver Investment to Make $800 Million Treasury Move, that appeared in the December 9, 1991, issue

  1. The following excerpt is taken from an article titled Denver Investment to Make $800 Million Treasury Move, that appeared in the December 9, 1991, issue of BondWeek, p. 1:

"Denver Investment Advisors will swap $800 million of long zero-coupon Treasuries for intermediate Treasuries... The move would shorten the duration of its $2.5 billion fixed income portfolio..."

Why would the swap described here shorten the duration of the portfolio?

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