Softening digital clipping

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The other day a friend gave me a voice recording on a CD that had originally been on a cassette. Whoever did the transfer has no idea how to set recording levels and there is digital clipping all over the place.

Question: does anyone know of any (preferably free) software that will "soften" this clipping so that it is not so hard on the ears? I imagine something that as the level approaches the clip point it will gradually round off the waveform instead of letting it hit the limit hard, and do the same as it leave the clip point.
 
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