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It's a problem with the default fonts on the Reader, not the Word document. There's no embedding in Word, and the Reader uses its fonts, not the ones in the Word document. (I don't remember if it has two or three fonts; don't know if it has a monospace font.)
This is why I usually make PDFs to read; the fonts are nicer than the default, especially for bold & italics.
There's a procedure for changing the default fonts in the Reader, but I don't think it fixes the bold/italic problem.
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