Federal Savings Bank Is Offering a 6-Month CD (Certificate of Deposit)

Federal Savings Bank is offering a 6-month CD (certificate of deposit) with an annual percentage rate of 4.5% compounded daily. What is the equivalent annual percentage rate compounded annually or APY (annual percentage yield) on the CD? Give your answer as a percentage rounded to the nearest tenth of a percent.

A) 4.7%
B) 4.8%
C) 4.9%
D) 5.0%
E) None of the above.