Which one of the following statements correctly describes the payback period as the term is applied to an investment in a convertible bond?

a.

It is the time remaining until the bond matures and the stockholder must convert in order to obtain anything of value.

b.

It is the time needed for the stock price to rise to its conversion parity.

c.

It is the time remaining until the investor will face a forced conversion of the bond.

d.

It is the time needed for the buyer to recover the conversion premium from the interest earned on the bond.