From Kaplan:
What does the $2,624 amount represent?
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The ending value of the original investment having earned a 7% annual return (nominal, compounded semiannually) for 15 years.
Okay, I finally calculated it correctly. N = 30, I/Y = 3.5, PV = -935, PMT = 0, FV = 2,624.35
I originally kept inserting the 35 coupon PMT, which gave me the wrong FV. This is a tricky problem because I am used to looking at the FV as the return of principal or par value.
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thanks for sharing this interesting problem.
PV=935, PMT =35, N=30 and I/Y=3.5% should give us a par value of $ 1000 but it yields around $ 831. I understand the explanation but still scratching my head why the basic function input doesn’t produce the par value.
If the coupon rate is 7% with a price of 93.5, the YTM at the time of purchase was greater than 7%.
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It comes out to be about 7.74 %
the way question is phrased it looks like the YTM is 7% ? That is where the confusion lies. Could someone please clarify. Thank you
Since the investment compounds semiannually, divide the 7% by 2, for a I/Y of 3.5%.
It’s easier to think of it as a holding period yield. 
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