Well, bullets DO rise above the line of sight, but they never climb above the line of the bore. You can't see it because the angle is too small, but the bore of the rifle points well above everything downrange, while the sights point below that. So the bullet crosses the line of sight twice: once soon after it leaves the muzzle and once more when it drops through the line of sight again.
For an easier to grasp analogy, think of a bow and arrow. You look at your target (line of sight) over the arrow. The arrow points well above the target while you're holding the bow back (the bore). When you shoot, the arrow rises and then falls again to hit the target. But it never "rises" as high as it was originally pointed.
Back to your load...
Sighted the way you wrote, the bullet would likely hit as much as two inches high somewhere about 175 yards, which would be its highest point. It would hit "on" again about 225 and hit ever lower after that. At 500 yards, it might be 12 or even 16" low. (I didn't plug it into a ballistics calculator, just wagged it)
Better would be if you sighted 2.5" high at 100. The bullet would never rise more than 4" above line of sight (aimpoint) and would be on again about 275, perhaps 6" low at 350.
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