Coherence is a frequency-domain measure of the degree to which the output of a system is linearly related to the system input. The signal-to-distortion ratio (SDR), where the distortion term includes all nonlinear effects and noise in the system, can be computed from the coherence. The coherence estimate, however, is subject to sources of variance and bias that reduce the accuracy of the measured SDR. The origins of the variance and bias and their effects on distortion measurements are presented. New procedures for reducing the variance and bias effects are described, and the processing effectiveness is demonstrated for a simulated hearing-aid response.