I am working on an exercise from Fisher's Complex Variables text. In Exercise 7 part b on page 205 we are asked to find a fractional linear tranformation $T$ (Mobius Transformation) which maps the real axis onto itself and the imaginary axis onto the circle $C: |w-1/2| = 1/2$. In other words, $$ T(\mathbb{R}) = \mathbb{R} \qquad \& \qquad T(i\mathbb{R}) = C $$ Since I lack an intuition for how to do this I tried direct algebraic attack. We know there must be $A,B,C,D \in \mathbb{C}$ with $AD-BC \neq 0$ and $T(z) = \frac{Az+B}{Cz+D}$. If $z = x$ is real then $T(x)$ must also be real hence $T(x) = \overline{T(x)}$. Thus, for most real $x$, $$ \frac{Ax+B}{Cx+D} = \frac{\overline{A}x+\overline{B}}{\overline{C}x+\overline{D}} $$ and we can easily find: $$ B\overline{D} = \overline{B}D, \qquad A\overline{D}+B\overline{C} = \overline{B}C+\overline{A}D, \qquad A\overline{C}=\overline{A}C. $$ All of this said, I am not much closer to a solution. Next, the condition $T(i \mathbb{R}) = C$ amounts to the condition that $|T(iy)-1/2| = 1/2$ for $y \in \mathbb{R}$. That is: $$ \left|\frac{Aiy+B}{Ciy+D} - \frac{1}{2} \right| = \frac{1}{2} $$ multiply by $2$ and create a common denominator, $$ \left|\frac{2Aiy+2B-Ciy-D}{Ciy+D}\right| = 1 \ \ \Rightarrow \ \ \left|\frac{2B-D+i(2A-C)y}{Ciy+D}\right| = 1 $$ Setting $y=0$ provides $|2B-D| = |D|$ and in conjunction with the previous condition I find $B=D$. This is far as I have gotten.
The answer given in the back of the text is $T(z) = \frac{1}{z+1}$
this means $B=D=1$ which doesn't disagree with my analysis thus far. However, I am curious how to derive $A = 0$ and $C=1$.
Question: how to complete my analysis, or, better yet, how to replace my analysis with an nice clear solution.
Thanks!
Following up on OP's approach...
Note that $\,B=D \ne 0\,$, otherwise the transformation would reduce to a constant. Then multiplying both the numerator and the denominator by $\,\dfrac{\bar B}{|B|^2}\,$ it can be assumed WLOG that $\,B=D=1\,$.
This reduces to $\;A-\bar A=C - \bar C \iff \operatorname{Im} A = \operatorname{Im} C\,$.
Using the above, this is equivalent to $\,\operatorname{Im} A\bar C = 0 \iff \operatorname{Im} A \cdot (\operatorname{Re} C - \operatorname{Re} A) = 0\,$. But $\,\operatorname{Re} A - \operatorname{Re} C \ne 0\,$, otherwise that would mean $\,A=C\,$ and the transformation would again be a constant, which leaves $\,\operatorname{Im} A = 0 \,$, and therefore $\,A, C \in \Bbb R\,$.
This now reduces to $\,|1 + i(2A-C)y| = |1+i Cy| \iff 1+(2A-C)^2y^2=1+C^2y^2\,$. Since $\,A\ne C\,$, it then follows that $\,A=0\,$.
So the general form of the tranformation is $\,T(z) = \dfrac{1}{C z + 1}\,$ with $\,C \in \Bbb R \setminus \{ 0 \}\,$.
[ EDIT ] A footnote about this line in the original post:
This only follows if assuming that $\,B \ne 0\,$. But $\,B=0\,$ is a valid choice, and similar calculations would then lead to the alternative representation in @Lubin's answer $\,T(z)=\dfrac{z}{z+D}\,$. The two forms differ by an inversion $\,z \mapsto \dfrac{1}{z}\,$ which preserves both axes, so they are equivalent.