Response to the following questions:
1. Explain the difference between a restored and a non-restored level. Why is a restoring gate preferred to a non-restoring gate (all other things being equal). Why is the restoring property important in digital design?
2. A corporate bond is sold for $1,000 (par value) with a 6% coupon. Shortly thereafter, interest rates in the economy (the nominal rate of interest) increases to 8% due to inflation worries. Give this scenario (all other things being equal), whic of the following bond valuations for this bond in the secondary market would most likely happen: $1,000, $1,080, $1,196, or nothing given the choices.