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This paper proposes and demonstrates a novel coded amplitude and pulse position modulation (APPM) scheme based on 2-D cyclic iterative coding (TDCIC) for short-reach optical systems. By adopting the precoding, better performance can be obtained because of the bits correlation. An experiment with 150-Gb/s TDCIC coded APPM signal is successfully reached after 22.5-km transmission. The demonstration also shows that the precoded APPM format provides superior performances to the conventional APPM and pulse amplitude modulation formats on chromatic dispersion tolerance and launched optical power.