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HDMI cables do carry audio.
2. Do i need to spend a lot of money for an audio/video cable ? Absolutely not. Test equipment may be able to differentiate between a $100 "monster" type cable and a $10 no-name cable but very few human ears can. There are many online sources for high-quality, low-cost cables such as monoprice.com and others.
Credit for questions 1 and 2 belong to tahoejeff