2011- T3.Hull.Chapter5&6 | Answer Verification

[atandon]

Hi David, shouldn't the answer be a)

168.5. If French money market instrument pays in Euros with an interest rate of 5.0% per annum with (discrete) annual compounding and under an actual/360 day count (ACT/360) convention, what is the equivalent rate under continuous compounding under an actual/365 day count?
a) 4.879%
b) 4.947%
c) 5.000%
d) 5.069%

Answer listed in doc - 168.5. B. 4.947% 365/360*LN(1+5%) = 4.947%

Correction - A: 4.947% 365/360*LN(1+5% * 360/365) = 4.88%

Pls confirm.

Regards,
atandon