Floating rate CDs differ from regular CDs in that:

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Floating rate CDs differ from regular CDs in that they have coupons that are frequently reset. This means that the interest rate on a floating rate CD can change over time. This is in contrast to regular CDs, which typically have a fixed interest rate for the entire term of the CD. Option A is incorrect because the maturity of a CD is typically set at the time of purchase and does not change. Option B is also incorrect because default risk can vary among CDs regardless of whether they have a fixed or floating interest rate. Option C is incorrect because all types of CDs are subject to taxation.

Floating Rate CDs Differ from Regular CDs in That