Yes, I just tried:
1) Created an new file in Word, with a line of text, a line of italic text and a JPG image.
2) Saved file as RTF.
3) Used a hex editor to ensure the image was embedded. It was, I could see the image binary data.
4) Dropped a RichTextBox on a form
5) Added a button
6) Handled the button click event:
private void myButton_Click(object sender, EventArgs e)
7) Ran program, pressed button.
8) Looked at text and picture...