A bond with a face value of $1,000 will mature in 7 years. The coupon
rate of interest is 6 % and interest is paid semi-annually. What is
the present value of the bond if the market rate of interest is 10%?

This problem can be solved by the formula:

PV = P (P/F i,n) + PMT (P/A i,n)

where P = principle amount
     PMT = the interest pmt (in this case semi-annual payment)
      i = interest rate
      n = number of periods

PV = 1000 (P/F 5,14) + (1000 X 3%)(P/A 5,14)
   = 1000 (.5051) + 30 (9.8986)
   = 505.10 + 296.96
   = 802.06

I think that should be the answer. But don't quote me on this, it has
been a long time since I did this.