The quoted ask yield on a 14 year $1000 par T-Bond with a 7% semiannual payment coupon and a price quote of 98:15 is

Question

Quizplus · Accepted Answer

Firstly, the price quote can be converted to decimal form as 98:15 = 98 + 15/32 = 98.46875. 
Next, the semiannual coupon payments can be calculated as $35 = 0.07/2 * $1000. 
Using a financial calculator, the yield can be found by inputting the following values: 
N = 28*2 = 56 (number of semiannual periods)
I/Y = ? (yield to maturity)
PV = -984.688 (negative since it represents the present value of the bond)
PMT = 35
FV = 1000
Solving for I/Y yields a result of 7.18%, which is choice B.

The Quoted Ask Yield on a 14 Year $1000 Par