Custom Post Types and Categories

Hi,

I am newbie in WP and it would be nice if someone guide me to an issue i am facing.

I have create a custom post type (books) and i have assigned it to a category (education). I have register post type in functions.php and when i type http://localhost/testwp/books wordpress gets every post for books but when i type http://localhost/testwp/book/education i get the “Oops! That page can’t be found”. I think i have to create a php page but i can’t figure out which page.

Thank you in advance

add_action( 'init', 'create_post_type' );
function create_post_type() {
    register_post_type( 'deals',
        array(
            'labels' => array(
                'name' => __( 'Deals' ),
                'singular_name' => __( 'Deal' )
            ),
        'public' => true,
        'has_archive' => true,
        )
    );

}