Baud rate = bit rate / n = 2400 / 3 = 800 baud. Modulation level = 2n = 23 = 8. This system is using an eight level modulation. Example 1-2 . A modem which is using a 16 level modulation is transmitting at 9600 baud. A) How many bits per signal change is it using? B) Calculate it’s bit rate. Solution: Modulation level = 2n. 16 = 2n. n = 4. B) Baud rate = bit rate / n