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Apple includes their Pages, Numbers, Keynote, iMovie, etc. so yes there is a word processor included. As far as can you make videos for YouTube, there really isn't any reason you couldn't on any modern computer, however the speed of rendering/exporting/etc. will be longer on lower in computers. The 5k iMac that is a little bit more expensive would be better for creating YouTube videos, however this model most certainly could do it.
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