Can I perform the quadratic formula on polynomial with complex coefficient?

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2 weeks ago, we had a Math test on complex number. One of the question was:

Let $z=x+iy$ be a non-zero complex number, where $x,y \in \mathbb{R}$.

Given that $z+\frac{1}{z} = k$, where $k$ is a real number, show that if $y \neq 0$, then $| k | \leq 2$.

My friend had tried solving it this way (as follows), but instead of proving the above, she had gotten a contradiction!

$z+\frac{1}{z} = x+iy + \frac{1}{x+iy} = \frac{x^2 + 2xyi - y^2 + 1}{x+ iy} = k$.

This is equivalent to saying that

$x^2 + 2xyi - y^2 + 1 = k(x + iy) = kx + kyi$

Then, $x^2 + (2yi-k)x + (1-y^2-kyi)=0 $

Since we know that $x \in \mathbb {R}$, then the discriminant of this polynomial will be greater or equal to 0. Hence,

Discriminant $= (2yi-k)^2 - 4(1-y^2-kyi) = -4y^2 - 4kyi + k^2 - 4 + 4y^2+4kyi = k^2 - 4 \geq 0$.

Thus, we can conclude from the above that $k^2 \geq 4, |k| \geq 2$, which is incorrect!

Can anyone help us explain why this is so? (we know the answer and correct solution but are just perplexed with why a contradiction occurs when performing the above. we have asked the class and the teacher but they too couldn't provide a convincing answer...)

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$$x^2-y^2+1+2xy(i)=xk+i(yk)$$

Equating the imaginary parts, $$yk=2xy\implies x=\frac k2\text{ as }y\ne0$$

Equating the real parts, $$x^2-y^2+1=xk\iff\frac{k^2}4-y^2+1=\frac{k^2}2\iff k^2=4(1-y^2)\le4$$

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Firstly (i'm not a big a fan of the method being used here) we should note that the next logical line for your friend to find after distributing the fraction is:

$$(x^2 - y^2 + 1 - kx) + (2x - k)yi = 0$$

WE NEED TO EQUATE THE REAL PARTS ON THE LEFT SIDE AND THE IMAGINARY ON THE RIGHT

By missing that key step the contradiction you found appeared to be true:

From here a system can be generated (since both the real and imaginary parts are 0)

$$2x - k = 0$$ $$x^2 -y^2 + 1 - kx = 0$$

Implying

$$x = \frac{k}{2}$$ $$ y = \sqrt{ 1 - \frac{k^2}{4}}$$

We note if $y$ is real then $\frac{k^2}{4} \le 1 \rightarrow k^2 \le 4 \rightarrow |k| \le 2$

Which is what you wanted to prove