How to link to a translated node? I am using Entity Translation module.

My Basic Page content type is using field translation, and I create a node (mysite.com/node/1 for English, mysite.com/de/node/1 for German).

Now in the body field of another node, I hyperlink some text to 'node/1'. But if I am viewing the site in German and I click that link, it reverts back to English.

Is the answer to provide a translation for the body field, hyperlinking to 'de/node/1' instead? I guess this would work, but seems like a lot of extra work for content editors?

Or am I missing something easy? I tried using Path Translation module (part of i18n package), but it doesn't recognise 'de/node/1' as a valid path.
As usual, there is a module for that! :) Check out Multi-Language Link and Redirect (MultiLink). It was a bit buggy when I was testing it 5 months ago so I didn't include it in my Drupal 7 Multilingual Sites book (well, it's referred to in the appendix, page 112), but it should be working by now. Have fun!