Derivatives: Future Value of Coupons (FVC)

How can the future value of coupons be more than the actual coupons themselves? For example: there is a quoted future on a 1.2 year T Bond that pays 7% while the risk free rate is 5%. The semi annual coupons are $35 with one due in .5 years from now and .7 years until maturity and another due in 1 year with .2 years until maturity.

FVC= (35x1.050.7) + (35x1.050.2) = 71.56

Is this because the underlying assumption is that the coupon payments will be reinvested at the same interest rate?

The future value of an investable asset will always be higher than the current value.

If (and only if) the risk-free rate is positive.