An efficient coding scheme with higher audio bandwidth and/or better audio quality at lower bitrates, wherein the scheme eliminates long-term and short-term frequency domain correlation in a signal via frequency domain predictors. The coding scheme compresses information consisting of coded low frequency components as well as a parametric representation for the high frequency components based on a non-linear model. Additionally, by working on the frequency domain representations of the signal (such as the MDCT representation which is naturally available to a PAC encoder and decoder), low pass and high pass signal components are easily obtained by windowing the appropriate ranges of frequencies in the signal. Furthermore, the power functions of the signal are replaced by corresponding convolution functions of the same order.