How is XAML interpreted and executed at runtime?

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What happens internally between loading XAML (or BAML) and receiving the root object (Window, for example)?

What first pops up in my mind is that Reflecton is used to create objects, set their properties and so on. But maybe I am wrong?

Maybe someone can explain how XAML/BAML is parsed and executed at runtime or give a link to a good article with the explanation?

To make my question a little bit more clear, let's discuss the short example:

<Button Margin="10">OK</Button>

So, the parser sees that a Button object needs to be created, that its Margin property has to be set to 10 and its content has to be set to "OK". How is that done? By using Reflection (plus TypeConverters, etc)?

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