It could be seen on a rack in the Clothes Shop once moused over.
Bambadee made the Friendship Bracelets, and always wore his own.
This item was placed in a similar manner to the Rockhopper's Key Pin (both were situated at the end of the book) as both books were written by Rockhopper.
There was a glitch when you walked out of the Book Room by doing several actions, there would be a giant Friendship Bracelet hovering in the air. However, it was fixed after the July 2008 server updates. This also worked for the Rockhopper's Key Pin.