SQL Server 2012 :: Encoding With Single Apostrophes In FOR XML PATH

Here is my problem:-

declare @test as varchar(32)
declare @test2 as varchar(32)

set @test='today''s problem'
set @test2='my <string> '

select @test as '@attribute' for xml path ('myrow')
select @test2 as '@attribute' for xml path ('myrow')

I want for xml path to correctly encode the single apostrophe as &apos but the single apostrophe doesn't get encoded. In the second example the greater and less than does get encoded.