An optical frequency-domain interferometer incorporating a Kosters prism is constructed to offer an excellent instrument for making a stable precision-measurement of material absorption and dispersion. The working stability is well retained over a long-term operation of 15 h, but the spectral resolution is limited to the resolving power of the spectrum analyzer used. The absorption and dispersion measurements are demonstrated by use of two samples of a BK-7 glass plate and rhodamine in ethanol.