If the 727 has a low/reverse band like the 904, the clunk is more than likely from the band/drum becoming glazed from hard use or from putting it in reverse cold with the engine at high idle for several seasons.
It is standard operating procedure for most overhaul shops to sand the drum down before putting on a new band. This breaks the glaze and allows a little extra oil to remain on the drum and cushion the band preventing the dreaded reverse clunk.
A lower idle setting can help soften the clunk too and prevent band glazing.
Since the low reverse band is only actuated during manual low or reverse I always avoid using it until engine is warm or at normal idle speed. My car still has a functioning choke with fast idle until warm up so I always back my car into it's parking slot to avoid using reverse when cold/high idle.
The reverse clunk is annoying but it won't hurt anything, your car is still healthy.