Which Statement Is Correct About the "If-Converted" Method for EPS

Which statement is correct about the "if-converted" method for EPS?

A) This method assumes the interest is paid on the convertible security until it was converted into ordinary shares.
B) This method assumes the interest is paid on the convertible security for one-half of the year.
C) This method assumes the interest is paid on the convertible security for the period after its issue date.
D) This method assumes the no interest is paid on the convertible security for the entire year.

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