A low-loss rectangular-passband multiplexer including a three-arm interferometer coherently connected to a waveguide grating router (WGR), resulting in a passband substantially of type N=3, without intrinsic loss. The three-arm interferometer has a free-spectral range (FSR) substantially equal to the channel spacing and is connected to an M-arm interferometer having a much larger FSR. The three-arm interferometer includes three waveguides each exhibiting a linearly increasing path length optically connected to a 1.times.3 coupler and a 3.times.3 coupler. The 1.times.3 coupler may be constructed from a series of Y-branch couplers.