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Officials said the bomb went off in the mainly Shia district of Shaab, in the north-east of the city.
Reports say the attack targeted a police patrol car, and three policemen are believed to be among the injured.
Bomb attacks have become less common in the capital in recent months, amid reports that violence in Iraq generally has fallen to a four-year low.
However, the US Congress has warned that Iraq's security environment "remains volatile and dangerous".
Correspondents say the US military has been working hard to bolster local government, to prevent areas from falling back under the control of extremists.
(BBC)
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