And that cost is taken into account when people value the merits of a particular investment/company. If bonds yield 100% p/a then an investment with even a dec

And that cost is taken into account when people value the merits of a particular investment/company. If bonds yield 100% p/a then an investment with even a decent potential payout in 10 years time will be seen as worthless. But one that is likely to pay out a dividend tomorrow may not be. That’s the whole premise behind discounted cashflow analysis: mechanistically taking into account the opportunity cost of the risk-free interest rate to derive a valuation.