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In this video, Leon demonstrates how to create a modern professional cover letter template in Microsoft Word. He begins by setting the correct page format, selecting A4 size under the Layout tab. Next, he inserts a rectangular shape for the contact information by navigating to the Insert tab and then the Shapes dropdown, roughly dragging the rectangle before adjusting its dimensions to 1cm in height and 21cm in width. He emphasizes that the width should match the chosen page format. Leon then centers the bar using the Align options and mentions changing its color, indicating a focus on design in the creation process.