This appendix contains some examples illustrating the sequence of entity- and character-reference recognition and expansion, as specified in 4.4 XML Processor Treatment of Entities and References.
If the DTD contains the declaration
<!ENTITY example "<p>An ampersand (&#38;) may be escaped numerically (&#38;#38;) or with a general entity (&amp;).</p>" >
then the XML processor will recognize the character references when it parses the entity declaration, and resolve them before storing the following string as the value of the entity “example”:
<p>An ampersand (&) may be escaped numerically (&#38;) or with a general entity (&amp;).</p>
A reference in the ...