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Dual Bose-Ray-Chaudhuri (BCH) codes, despite their favorable peak to average power ratio (PAPR) properties, have not been used in coded orthogonal frequency division multiplexing (OFDM) systems. This is due to unavailability of a practical decoder and large performance gap to the Shannon limit. In this paper, we propose an advanced approach to solve the aforementioned problems. We construct a new code with favorable PAPR properties based on dual BCH codes and develop the associated maximum a posteriori (MAP) decoding algorithm. By exploiting this code as the frequency domain constituent code in a time-frequency turbo structure, we reduce the gap between the performance and Shannon limit while the bounded PAPR of OFDM symbols is guaranteed. By comparative performance evaluation we illustrate that the performance of this system is comparable with that of capacity approaching codes while it has 7 dB lower PAPR.