You are required to analyze the investment on three bonds. Some key information related to each bond is extracted and summarized in the following table: Bond 1 Bond 2 Bond 3 Par value $1,000 $500 $2,000 Coupon rate 5% 6% 8% Market interest 6% 8% 10% rate Time to maturity 8 years 12 years 10 years Annual Compounding frequency Semi-annual Semi- annual Macaulay duration 6.74 8.39 6.84 8.07 6.51 Modified Macaulay 6.35 duration Assume that you expect the market interest rate will decrease next year, which bond is preferred for investment? Please explain