A performance analyst at an asset management firm is measuring the returns of individual positions in a fixed-income portfolio. Details regarding the performance of a specific bond over a recent 6-month period are as follows:

• Purchase price on July 1: BRL 1,062,500

• Coupon received on September 30: BRL 27,500

• Coupon received on December 31: BRL 27,500

• Closing price on December 31: BRL 1,048,200

• Total financing cost from July 1 to December 31: 3.5%

• Return on reinvested funds from September 30 to December 31: 3.0%

What was the net return earned on the bond over the period from July 1 through December 31, annualized using semi-annual compounding?