I was reading The Intelligent Investor, I have a question on this quote.

[Tiggerbee]

This quote is particularly from Chapter 11: Security Analysis for the Lay Investor.

"A given schedule of expected earnings, or dividends would have a smaller present value if we assume a higher than if we assume a lower interest structure.*"

Then at the bottom of the page, the commentary of Jason Zweig explains this quote further:

"When interest rates are high, the amount of money you need to set aside today to reach a given value in the future is lower - since those high interest rates will enable it to grow at a more rapid rate. Thus a rise in interest rates today makes a future steam of earnings or dividends less valuable - since the alternative of investing in bonds has become relatively more attractive."

From what I understand, basically if you use a higher discount rate to discount future earnings/dividends, the present value will be lower. But this explanation really confuses me. Why has investing in bonds become relatively more attractive? Is it because when banks interest rates rise, bonds become cheaper?

Typically, a bond investor should only invest in bonds when interest rates are high because the coupon rate will also be high. And when interest rates had peaked and starts to decline, bond prices will rise.