The performance of full-duplex (FD) relay systems can be greatly impacted by the self-interference (SI) at relays. By exploiting multi-antenna in FD relay systems, the spectral efficiency of FD relay systems can be enhanced through spatial SI mitigation... This paper studies joint source transmit beamforming and relay processing to achieve rate maximization for FD MIMO amplify-and-forward (AF) relay systems with consideration of relay processing delay. The problem is difficult to solve due mainly to the SI constraint induced by the relay processing delay. In this paper, we first present a sufficient condition under which the relay amplification matrix has rank one structure. Then, for the case of rank one amplification matrix, the rate maximization problem is equivalently simplified into an unconstrained problem which can be locally solved using gradient ascent method. Next, we propose a penalty-based algorithmic framework, called P-BSUM, for a class of constrained optimization problems which have difficult equality constraints in addition to some convex constraints. By rewriting the rate maximization problem with a set of auxiliary variables, we apply the P-BSUM algorithm to the rate maximization problem in the general case. Finally, numerical results validate the efficiency of the proposed algorithms and show that the joint source-relay design approach under the rank one assumption could be strictly suboptimal as compared to the P-BSUM-based joint source-relay design approach. (read more)