The recently proposed two-level atom bichromatic beam splitter has bee
n shown theoretically to give exceptionally clean beam splitting in mo
mentum space. In this paper, we investigate the first-order coherence
property of this beam splitter, which is an important test of its usef
ulness in interferometric applications. We find that the beam splitter
exhibits maximum fringe visibility of 0.3, which may be increased sig
nificantly through conditioning on certain variables. We then propose
a type of atom interferometer based on this system, which has many des
irable properties when compared with existing versions.