The term baud gives the signaling rate in symbols per second. For binary systems signaling rate in bauds is equivalent to data rate in bits per second because in a binary system the signaling element takes on one of two different amplitudes" either a one or a zero can be encoded, according to the amplitude value. Suppose each signaling element takes on one of four amplitudes. Each amplitude then corresponds to a specific 2-bit pair (00, 01, 10, 11). In this 2-bit case, bit rate = 2. baud rate. Find the data rate in bps (bits per second) for a digital system using 16 different signaling states and transmitting at 1200 baud.