Replace special characters ' and " in xslt

I need to replace characters ' and " using xslt. I need to replace them in whole text in xml file. ' character should be replaced to " but only for expressions, in cases where ' is part of word ('s, 'm, 've, etc.) it should not be replaced.

<para ampexmnem="dpa2">
<paratext>The Secretary, in consultation with the Secretary of Health and Human Services, shall, with respect to any items described in this subsection which are to be included in a taxpayer's return of tax, develop language for such items which is as simple and clear as possible (such as referring to 'insurance affordability programs' as 'free or low-cost health insurance').</paratext>
</para>

I tried different solutions, but have no luck, characters were not replaced.

<xsl:template name="replace-quotes">
        <xsl:param name="text"/>
        <xsl:param name="replace" select="'&amp;apos;'"/>
        <xsl:param name="by" select="'&amp;quot;'"/>
        <xsl:choose>
            <xsl:when test="contains($text, $replace)">
                <xsl:value-of select="substring-before($text, $replace)"/>
                <xsl:value-of select="$by"/>
                <xsl:call-template name="replace-quotes">
                    <xsl:with-param name="text" select="substring-after($text, $replace)"/>
                </xsl:call-template>
            </xsl:when>
            <xsl:otherwise>
                <xsl:value-of select="$text"/>
            </xsl:otherwise>
        </xsl:choose>
    </xsl:template>

    <xsl:template match="text()">
        <xsl:call-template name="replace-quotes">
            <xsl:with-param name="text" select="."/>
        </xsl:call-template>
    </xsl:template>

<xsl:template match="@* | node()">
        <xsl:choose>
            <xsl:when test="contains(string-join(text(), ''), '&amp;apos;')">
                <xsl:value-of select="replace(string-join(text(), ''), '&amp;apos;', '&amp;quot;')"/>
            </xsl:when>
            <xsl:otherwise>
                <xsl:copy>
                    <xsl:apply-templates select="@* | node()"/>
                </xsl:copy>
            </xsl:otherwise>
        </xsl:choose>
        <xsl:copy>
            <xsl:apply-templates select="@* | node()"/>
        </xsl:copy>
    </xsl:template>

May be I missed template's order, but I tried to put these templates in the beginning and in the end of xslt.

Actual result is: The Secretary, in consultation with the Secretary of Health and Human Services, shall, with respect to any items described in this subsection which are to be included in a taxpayer's return of tax, develop language for such items which is as simple and clear as possible (such as referring to 'insurance affordability programs' as 'free or low-cost health insurance').

Expected result is: The Secretary, in consultation with the Secretary of Health and Human Services, shall, with respect to any items described in this subsection which are to be included in a taxpayer's return of tax, develop language for such items which is as simple and clear as possible (such as referring to "insurance affordability programs" as "free or low-cost health insurance").

Solution

I don't think the problem is defined well enough.

Ostensibly you want to replace an apostrophe with a quote only if it appears at the beginning or at the end of a word - which could be done using:

XSLT 2.0

<xsl:stylesheet version="2.0" 
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output method="xml" version="1.0" encoding="UTF-8" indent="yes"/>
<xsl:strip-space elements="*"/>

<xsl:template match="@*|node() except text()">
    <xsl:copy>
        <xsl:apply-templates select="@*|node()"/>
    </xsl:copy>
</xsl:template>

<xsl:template match="text()">
    <xsl:value-of select="replace(., '(^|\W)''(\w)|(\w)''(\W|$)', '$1$3&quot;$2$4')"/>
</xsl:template>

</xsl:stylesheet>

But then consider what will happen if you have text like:

an angle of 135° 30' 0"

or:

it is the parents' responsibility