A new, to our knowledge, heterodyne interferometer for differential displac
ement measurements is presented. It is, in principle, fi-ee of periodic non
linearity. A pair of spatially separated light beams with different frequen
cies is produced by two acousto-optic modulators, avoiding the main source
of periodic nonlinearity in. traditional heterodyne interferometers that ar
e based on a Zeeman split laser. In addition, laser beams of the same frequ
ency are used in the measurement and the reference arms, giving the interfe
rometer theoretically perfect immunity from common-mode displacement. We ex
perimentally demonstrated a residual level of periodic nonlinearity of less
than 20 pm in amplitude. The remaining periodic error is attributed to unb
alanced ghost reflections that drift slowly with time. (C) 1999 Optical Soc
iety of America.