Company a Issued Convertible Notes 3 Years Ago and Accounted

Company A issued convertible notes 3 years ago and accounted for them as a compound financial instrument. Complete the following sentence. At the end of the three year period the portion of the component that relates to the notes which have been converted .

A) liability, remains as a liability.
B) liability, is transferred to equity.
C) equity, is transferred to profit and loss.
D) liability, is transferred to profit or loss.