BLACKROCK TARGET TERM TRUST INC, N-30D, 2000-08-31

BLACKROCK TARGET TERM TRUST INC
N-30D, 2000-08-31

Previous: CAPITAL GROWTH INC, 8-K/A, EX-2, 2000-08-31

Next: IMTEK OFFICE SOLUTIONS INC, 15-15D, 2000-08-31

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISOR
--------------------------------------------------------------------------------

July 31, 2000

Dear Shareholder:

In the first half of the year, fears of an open-ended tightening policy by
the Federal Reserve peaked in May, which resulted in a subsequent relief in the
market as the U.S. economy seemed to decelerate significantly. During the
period, the Federal Reserve tightened short-term rates by 1.00% in an attempt to
engineer a "soft landing" for the U.S. economy. In the first six months of the
new millennium we have witnessed unprecedented volatility in both the Treasury
yield curve and the spread sectors. The Treasury curve inverted sharply in the
first quarter, but as weak economic data emerged in the second quarter, market
participants embraced an economic "soft landing" scenario causing the yield
curve to steepen. The downward revision in growth expectations allowed spread
sectors to rally in the month of June, but year-to-date their performance still
trails Treasuries.

While fears of a hawkish Federal Reserve and consequent risks of a "hard
landing" may not materialize immediately, the risks are skewed in that
direction. A longer period of subdued financial market performance is necessary
to enable the labor markets to build up slack, which is an important
pre-condition for the Fed to achieve its goal. Given the likelihood of a
re-emergence of risk aversion in the capital markets as well as a continual
increase in the "scarcity premium" of Treasury securities, we are less inclined
to be aggressive with respect to spread assets. We are also focusing on the use
of high quality spread assets to increase the income or "carry" so that a total
return advantage over Treasuries is achieved despite further spread widening.

This report contains a summary of market conditions during the semi-annual
period and a review of portfolio strategy by your Trust's managers in addition
to the Trust's unaudited financial statements and a detailed list of the
portfolio's holdings. Continued thanks for your confidence in BlackRock. We
appreciate the opportunity to help you achieve your long-term investment goals.

Sincerely,

/s/ LAURENCE D. FINK /s/ RALPH L. SCHLOSSTEIN
-------------------- ------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President

<PAGE>

July 31, 2000

Dear Shareholder:

We are pleased to present the unaudited semi-annual report for The
BlackRock Target Term Trust Inc. ("the Trust") for the semi-annual period ending
June 30, 2000. We would like to take this opportunity to review the Trust's
stock price and net asset value (NAV) performance, summarize market developments
and discuss recent portfolio management activity.

The Trust is a diversified, actively managed closed-end bond fund whose
shares are traded on the New York Stock Exchange under the symbol "BTT". The
Trust's investment objective is to return $10 per share (its initial offering
price) to shareholders on or about December 31, 2000. Although there can be no
guarantee, BlackRock is confident that the Trust can achieve its investment
objective. The Trust will seek to achieve its objective by investing in
investment grade fixed income securities, including corporate debt securities,
mortgage-backed securities backed by U.S. Government agencies (such as Fannie
Mae, Freddie Mac or Ginnie Mae), asset-backed securities and commercial
mortgage-backed securities. All of the Trust's assets must be rated at least
"BBB" by Standard & Poor's or "Baa" by Moody's at time of purchase or be issued
or guaranteed by the U.S. Government or its agencies.

The table below summarizes the performance of the Trust's stock price and
NAV over the period:

-------------------------------------------------
6/30/00 12/31/99 CHANGE HIGH LOW
--------------------------------------------------------------------------------
STOCK PRICE $9.625 $9.625 -- $9.6875 $9.50
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $9.85 $9.78 0.72% $9.85 $9.76
--------------------------------------------------------------------------------
5-YEAR U.S. TREASURY NOTE 6.18% 6.34% (2.52)% 6.81% 6.07%
--------------------------------------------------------------------------------

THE FIXED INCOME MARKETS

The economy entered 2000 with a tremendous amount of strength and
momentum, labor markets were very tight, and the opinion was that the best news
on inflation was behind us. Despite this, throughout the period, the view was
that the Federal Reserve would maintain a gradual process of slowing the economy
until a more pronounced pick-up in inflation was evident. In March, the Federal
Reserve raised both the overnight rate and the discount rate 0.25% to 6.0% and
5.5%, respectively. Despite the sell-off in the equity market in April, in May
concerns about an overheating economy due to an increased shortage of labor and
rising oil prices led the Federal Reserve to raise rates another 0.50% to 6.5%.

Recent economic data indicates that the U.S. economy started to slow in
the second quarter. Consumer spending, manufacturing, and labor activity all
point to a softer economy. The real question is whether this slowdown is the
start of something bigger (soft or hard landing) or simply a natural pause from
well above-trend growth. Goldman Sachs' financial conditions index shows that
conditions are as accommodative now as they were last June, prior to the 175
basis points of Fed tightening. This suggests that growth is likely to
reaccelerate later in the year and bring the Fed back into play.

Treasury yields decreased in the first half of 2000. Over the course of
the year so far, the yield of the 10-year Treasury has decreased by nearly 42
basis points (0.42%). The yield of the 5-Year Treasury posted a net decrease of
16 basis points (0.16%). Bond prices, which move inversely to their yields, have
risen in expectation of a slowing economy due to higher short-term interest
rates. We anticipate a continued flattening of the yield curve as a result of an
active Federal Reserve and potential Treasury repurchases of long maturity debt.

2
<PAGE>

Mortgages posted positive returns during the first half of the year but
trailed the broader market, which was led by the strong rally in the Treasury
market. As measured by the LEHMAN BROTHERS MORTGAGE INDEX, mortgages posted a
3.67% total return versus 3.99% for the LEHMAN BROTHERS AGGREGATE INDEX.
Strength in the housing market has continued unabated, leading to more supply
than expected, but in comparison to other spread sectors, mortgages benefited
from greater liquidity and higher credit quality. On a relative valuation basis
mortgages appear cheap, although uncertainty was increased in the market by
Treasury Undersecretary Gensler's testimony concerning a bill seeking to end the
quasi-governmental status of FNMA and FHLMC. GNMAs performed well during the
first quarter as a Treasury substitute, since it is the only other asset class
backed by the full faith and credit of the U.S. Government.

Investment grade corporate securities encountered difficulty as fixed
income investors sought the credit quality and liquidity of Treasuries. For the
first half of the year, corporates as measured by MERRILL LYNCH U.S. CORPORATE
MASTER INDEX returned 2.22%, under performing the LEHMAN BROTHERS AGGREGATE
INDEX's 3.99%. Fundamentally the corporate market appears healthy, with
companies reporting strong earnings in the first half of the year. The negatives
in the corporate market are from stock market volatility, poor liquidity,
increased leverage and deteriorating credit quality, which has increased
uncertainty in the market. With the uncertainty of future fed action in the
market, lower current yields could cloud the supply picture and lead to an
acceleration in issuance.

THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY

BlackRock actively manages the Trust's portfolio holdings consistent with
BlackRock's overall market outlook and the Trust's investment objectives. The
following chart compares the Trust's current and December 31, 1999 asset
composition.

----------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
----------------------------------------------------------------------------
COMPOSITION JUNE 30, 2000 DECEMBER 31, 1999
----------------------------------------------------------------------------
Zero-Coupon Bonds 47% 58%
----------------------------------------------------------------------------
Commercial paper & discount notes 25% 1%
----------------------------------------------------------------------------
Corporate Bonds 10% 11%
----------------------------------------------------------------------------
Stripped MoneyMarket Instruments 8% 7%
----------------------------------------------------------------------------
Asset-Backed Securities 4% 2%
----------------------------------------------------------------------------
Adjustable & Inverse Floating Rate Mortgages 2% 3%
----------------------------------------------------------------------------
Taxable Municipal Bonds 1% 3%
----------------------------------------------------------------------------
Principal-Only Mortgage-Backed Securities 1% 2%
----------------------------------------------------------------------------
Non-Agency Multiple Class Pass-Throughs 1% 1%
----------------------------------------------------------------------------
Mortgage Pass-Throughs 1% 9%
----------------------------------------------------------------------------
U.S. Government Securities -- 3%
----------------------------------------------------------------------------

<PAGE>

----------------------------------------------------------------------------
RATING % OF CORPORATES
------------------------------------
CREDIT RATING JUNE 30, 2000 DECEMBER 31, 1999
----------------------------------------------------------------------------
AA or equivalent 13% 16%
----------------------------------------------------------------------------
A or equivalent 41% 60%
----------------------------------------------------------------------------
BBB or equivalent 46% 24%
----------------------------------------------------------------------------

In accordance with the Trust's primary investment objective of returning
the initial offer price upon maturity, the Trust's portfolio management activity
focused on adding securities, which offer attractive yield spreads over Treasury
securities, and an emphasis on bonds with maturity dates approximating the
Trust's termination date of December 31, 2000. Additionally, the Trust has been
active in reducing positions in bonds which have maturity dates or potential
cash flows after the Trust's termination date. During the reporting period, the
most significant additions were in commercial paper and discount notes. To
finance these purchases, the Trust reduced its position in corporate bonds and
mortgage pass-throughs. The Trust's top holdings were in Treasury Strips.

Consistent with the Trust's primary investment objective the continual
reinvestment of cash flows into shorter maturity securities over time as the
Trust approaches its maturity date results in a natural reduction in the amount
of net investment income generated by the Trust. Therefore, after careful
evaluation of the current and anticipated level of the Trust's net investment
income, the Board of Directors of The BlackRock Target Term Trust Inc. voted to
reduce the Trust's monthly dividend from $0.03875 ($0.465 annualized) to $0.025
($0.300 annualized) effective with the April 28, 2000 dividend payment. The
Trust is on schedule to achieve its primary investment objective of returning
$10 per share to investors on or about December 31, 2000.

Additionally, the Trust adopted a plan of liquidation effective January 1,
2000, which results in all of the Trust's 2000 dividend payments being
classified as return of capital for tax purposes only.

We look forward to managing the Trust to benefit from the opportunities
available in the fixed income markets and to meet its investment objectives. We
thank you for your investment in the BlackRock Target Term Trust Inc. Please
feel free to contact our marketing center at (800) 227-7BFM (7236) if you have
specific questions which were not addressed in this report.

Sincerely,

/s/ ROBERT S. KAPITO /s/ MICHAEL P. LUSTIG
-------------------- ---------------------
Robert S. Kapito Michael P. Lustig
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Advisors, Inc. BlackRock Advisors, Inc.

<PAGE>

1 Yield on Closing Stock Price is calculated by dividing the current annualized
distribution per share and dividing it by the closing stock price per share.
2 Distribution is not constant and is subject to change.

5
<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
RATING* (000) DESCRIPTION (NOTE 1)
--------------------------------------------------------------------------------

LONG-TERM INVESTMENTS--94.2%

MORTGAGE PASS-THROUGHS--0.9%
Federal Home Loan Mortgage Corp.,
$ 3,425 5.00%, 11/01/00 - 5/01/01,
7 Year ...................... $ 3,395,888
34 7.50%, 2/01/07, 15 Year ....... 34,093
5,282 9.00%, 5/01/07, 15 Year ....... 5,385,168
-----------
8,815,149
-----------

AGENCY MULTIPLE CLASS MORTGAGE
PASS-THROUGHS--0.3%
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage
Participation Certificates,
38 Series 29, Class 29-SC,
4/25/24 ..................... 37,710
2,110 Series 1425, Class 1425-G,
8/15/06 ..................... 2,099,952
430 Series 1613, Class 1613-E,
4/15/06 ..................... 427,992
633@ Federal National Mortgage
Association, REMIC
Pass-Through Certificates,
Trust 1993-M2, Class M2-H,
11/25/03, Multifamily ....... 624,901
-----------
3,190,555
-----------
NON-AGENCY MULTIPLE CLASS
MORTGAGE PASS-THROUGHS--1.0%
AAA 3,137 GE Capital Mortgage Services Inc.,
Series 1995-9, Class 9-A3,
11/25/25 .................... 3,116,322
AAA 3,828 Residential Accredit Loans Inc.,
Series 1999-QS1, Class A-1,
1/25/29 ..................... 3,804,188
AAA 2,742 Salomon Capital Access Corp.,
Series 1986-1, Class C,
9/01/15 ..................... 2,762,172
-----------
9,682,682
-----------
ADJUSTABLE & INVERSE
FLOATING RATE MORTGAGES--3.0%
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage
Participation Certificates,
616 Series 1539, Class 1539-FB,
6/15/05 ..................... 615,008
1,759 Series 1539, Class 1539-SB,
6/15/05 ..................... 1,736,835
8,787 Series 1566, Class 1566-FB,
9/15/00 ..................... 8,787,485
1,388 Series 1566, Class 1566-SC,
9/15/00 ..................... 1,386,222
65 Series 1580, Class 1580-S,
9/15/00 ..................... 62,065
178 Series 1608, Class 1608-SK,
11/15/22 .................... 175,215
Federal National Mortgage
Association, REMIC Pass-Through
Certificates,
119 Trust 1993-123, Class 123-F,
7/25/00 ..................... 118,675
1,090 Trust 1993-180, Class 180-SA,
9/25/00 ..................... 1,095,594
361 Trust 1993-227, Class S,
12/25/00 .................... 351,892
AAA 13,624 PNC Mortgage Securities Corp.,
Series 1997-6, Class 6-A1,
10/25/26 .................... 13,623,905
-----------
27,952,896
-----------
INTEREST ONLY MORTGAGE-BACKED
SECURITIES--0.2%
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage
Participation Certificates,
730 Series 1440, Class 1440-PK,
8/15/18 ..................... 18,352
478 Series 1564, Class 1564-I,
5/15/07 ..................... 33,258
1,202 Series 1702, Class 1702-PM,
10/15/16 .................... 9,110
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
69 Trust 18, Class 2,
2/01/17 ..................... 15,451
375 Trust 1991-29, Class 29-J,
4/25/21 ..................... 123,705
3,456 Trust 1993-11, Class 11-M,
2/25/08 ..................... 341,501
72 Trust 1993-113, Class 113-PL,
4/25/18 ..................... 369
2,580 Trust 1993-172, Class 172-S,
9/25/00 ..................... 29,484
1,854 Trust 1993-225, Class 225-VK,
11/25/17 .................... 3,561
1,168 Trust 1993-G34, Class G34-PV,
2/25/17...................... 10,862
20,404 Trust 1997-65, Class 65-SA,
9/25/00 ..................... 3,188
659 Trust 1998-25, Class 25-PE,
9/18/11 ..................... 6,338
AAA 9,487 Green Tree Financial Corp.,
Series 1997-D, Class H,
7.57%, 9/15/28 .............. 142,308
AAA 4,779 Prudential-Bache CMO Trust,
Series 16, Class 16-P,
10/25/21 .................... 781,399
-----------
1,518,886
-----------

See Notes to Financial Statements.

6
<PAGE>

--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
RATING* (000) DESCRIPTION (NOTE 1)
--------------------------------------------------------------------------------

PRINCIPAL ONLY MORTGAGE-BACKED
SECURITIES--0.8%
$ 133 Federal Home Loan Mortgage Corp.,
Multiclass Mortgage
Participation Certificates,
Series G36, Class G36-B,
4/25/24 .......................... $ 132,423
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
2,625 Trust 1993-213, Class 213-G,
9/25/23 .......................... 2,587,397
1,515 Trust 1994-8, Class 8-C,
11/25/23 ......................... 1,492,046
103 Trust 1994-9, Class 9-G,
11/25/23 ......................... 101,138
3,116 Trust 1997-65, Class 65-A,
9/25/00 .......................... 3,087,103
-----------
7,400,107
-----------
COMMERCIAL MORTGAGE-BACKED

SECURITIES--0.2%
Aaa 2,201 FDIC Trust,
Series 1994-C1, Class 2C,
8.45%, 9/25/25 ................... 2,200,731
-----------

ASSET-BACKED SECURITIES--4.9%
AAA 588 Chevy Chase Auto Receivables,
Series 1996-1, Class A,
6.60%, 12/15/02 ...... 587,344
AAA 3,580 Citibank Credit Card Master Trust,
Series 1997, Class A,
6.35%, 8/15/02 ................... 3,577,203
AAA 10,000 Discover Card, Series 97,
6.721%, 4/16/03 .................... 10,000,000
AAA 346 Fifth Third Bank Auto Trust,
Series 1996-B, Class A,
6.45%, 3/15/02 ................... 345,164
AAA 4,740 First Security Auto Grantor Trust,
Series 1998-A, Class A1,
5.97%, 4/15/04 ................... 4,684,772
First USA Credit Card Master Trust,
Series 1995, Class A,
AAA 25,000 6.805%, 7/10/03 .................. 25,007,812
AAA 2,000 6.821%, 4/15/03 .................. 2,000,313
-----------
46,202,608
-----------
ZERO COUPON BONDS--57.6%
2,185 Agency STRIPS, Series 1, relating
to Federal National Mortgage
Association 8.95% Debentures,
Series SM-2018-A, 8/12/00 .......... 2,169,006
6,250 Federal Judiciary Office Building,
8/15/00 ............................ 6,205,062
16,620 Federal National Mortgage Association,
8/01/00 - 8/12/00 .................. 16,521,404
96,357 Financing Corp. (FICO Strips),
8/03/00 - 12/27/00 ................. 93,106,658
333 Government and Agency Term
Obligation Receipt, 11/15/00 325,242
356 Physical Treasury Coupons,
8/15/00 ............................ 353,941
40,000 Tennessee Valley Authority,
11/01/00 ........................... 39,216,400
1,862 U.S. Treasury CUBES,
11/15/00 ........................... 1,821,353
389,851@ U.S. Treasury Strips,
11/15/00 ........................... 381,706,008
-----------
541,425,074
-----------
TAXABLE MUNICIPAL BONDS--1.8%
AAA 2,190 Long Beach California
Pension Obligation,
6.33%, 9/01/00 ................... 2,187,416
Massachusetts State Housing
Fin. Auth.,F.H.A.
AAA 6,135 Series 1991-A, 6.85%, 4/01/21 ...... 6,135,000
AA 2,405 Series C, 6.85%, 4/01/19, .......... 2,405,000
A 5,000 New York St. Dorm. Auth. Rev.,
Pension Obligation,
6.63%, 10/01/00 .................... 4,988,900
A 1,200 New York St. Environ. Facilities Auth.,
6.49%, 9/15/00 ..................... 1,197,480
-----------
16,913,796
-----------

<PAGE>

CORPORATE BONDS--13.1%
FINANCE & BANKING--10.5%
A+ 10,000 AT&T Capital Corp.,
7.50%, 11/15/00 .................... 10,007,200
BBB 15,000 Case Credit Corp.,
6.24%, 11/06/00 .................... 14,954,850
BBB 8,000 Franchise Finance Corp.,
7.00%, 11/30/00 .................... 7,972,560
BBB+ 28,971 GATX Capital Corp.,
6.50%, 11/01/00 .................... 28,833,678
A+ 10,000 Goldman Sachs Group LP,
6.20%, 12/15/00**................... 9,961,200
A3 2,500 Popular Inc.,
6.40%, 8/25/00 .................... 2,498,700
A 8,000 Progressive Corp. Ohio,
10.125%, 12/15/00 ................. 8,099,360
A3 5,300 Provident Bank,
6.125%, 12/15/00 .................. 5,255,957
Aa3 10,300 Salomon Smith Barney
Holdings, Inc.,
6.625%, 11/30/00 .................. 10,282,799
-----------
97,866,304
-----------

See Notes to Financial Statements.

<PAGE>

UTILITIES--2.1%
A3 $ 5,000 Columbia Energy Group, Inc.,
6.39%, 11/28/00 .................... $ 4,979,150
A- 5,000 MCI Worldcom, Inc.,
6.94%, 8/17/00 ** .................. 5,002,200
AA- 5,000 National Rural Utilities Cooperative,
6.10%, 12/22/00 .................... 4,976,100
BBB+ 5,000 Potomac Capital Investment Corp.,
6.90%, 8/09/00** ................... 5,000,000
------------
19,957,450
------------
YANKEE--0.5%
A 5,000 Corporacion Andina de Fomento,
7.375%, 7/21/00 .................... 5,000,350
------------
Total corporate bonds................. 122,824,104
------------
COLLATERALIZED MORTGAGE OBLIGATION
RESIDUALS**/***--0.0%
NR 1 M.D.C. Asset Investors, Trust VI,
11/01/17, (REMIC) .................. 164,237
NR 57 PaineWebber Trust,
Series N, Class 7,
1/01/19, (REMIC) ................. 140,398
------------
304,635
------------
STRIPPED MONEY MARKET
INSTRUMENTS--10.4%
50,000 AIM Prime Portfolio,
12/01/00 ........................... 48,727,300
50,000 Goldman Sachs Money Market,
12/01/00 ........................... 48,723,400
------------
97,450,700
------------
Total long-term investments
(cost $877,404,749)................. 885,881,923
------------
SHORT-TERM INVESTMENTS--32.2%
COMMERCIAL PAPER--30.6%
P-1 25,000 Aegon Funding Corp.,
6.17%, 12/01/00**................... 24,344,438
P-2 30,000 Case Credit Corp.,
6.45%, 11/17/00 .................... 29,252,875
P-1 50,000 CC USA, Inc.,
6.10%, 9/15/00 ..................... 49,356,111
Convergys Corp.,
P-2 20,000 6.35%, 12/04/00 .................... 19,449,666
P-2 10,000 6.43%, 12/04/00 .................... 9,721,367
P-2 15,000 6.50%, 12/04/00 .................... 14,577,500
P-2 50,000 Donaldson Luftkin & Jenrette,
6.40%, 12/08/00 .................... 48,577,778
P-2 45,000 Goodyear Tire & Rubber Co.,
6.45%, 11/17/00 ........ 43,879,312
P-2 $50,000 Williams Holdings of Delaware, Inc.,
6.40%, 12/08/00 .................... 48,577,778
------------
287,736,825
------------

DISCOUNT NOTES--1.6%
14,940 Federal Home Loan Mortgage Corp.,
6.57%, 7/03/00...................... 14,934,547
------------
Total short-term investments
(amortized cost $302,671,372) ...... 302,671,372
------------
Total investments
(cost $1,180,076,121)...............1,188,553,295
-------------
Liabilities in excess of
other assets-- (26.4)% ............. (248,023,435)
------------
NET ASSETS--100%...................... $940,529,860
============

----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
** Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration to qualified institutional buyers.
*** Illiquid securities, representing 0.03% of net assets.
@ Entire or partial principal amount pledged as collateral for reverse
repurchase agreements or financial futures contracts.

--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS

CMO -- Collateralized Mortgage Obligation.
F.H.A. -- Federal Housing Administration.
REMIC -- Real Estate Mortgage Investment Conduit.
--------------------------------------------------------------------------------

See Notes to Financial Statements.

8
<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------

ASSETS
Investments, at value (cost $1,180,076,121)
(Note 1) ................................... $ 1,188,553,295
Cash ......................................... 9,956
Interest receivable .......................... 2,259,926
Unrealized appreciation on interest rate swaps
(Note 1 & 3) ............................... 1,646,375
---------------
1,192,469,552
---------------
LIABILITIES
Reverse repurchase agreements (Note 4) ....... 250,751,000
Interest payable ............................. 530,756
Investment advisory fee payable (Note 2) ..... 348,169
Administration fee payable (Note 2) .......... 70,138
Accrued expenses and other liabilities ....... 239,629
---------------
251,939,692
---------------
NET ASSETS ................................... $ 940,529,860
===============
Net assets were comprised of:
Common stock, at par (Note 5) .............. $ 954,606
Paid-in capital in excess of par ........... 889,998,506
---------------
890,953,112
Undistributed net investment income .......... 51,155,642
Accumulated net realized loss ................ (11,702,443)
Net unrealized appreciation .................. 10,123,549
---------------
Net assets, June 30, 2000 .................... $ 940,529,860
===============
Net asset value per share:
($940,529,860/95,460,639 shares of
common stock issued and outstanding) ....... $9.85
=====

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------

NET INVESTMENT INCOME
Income
Interest earned (including net discount accretion
of $28,479,520 and net of interest expense
of $12,009,984) ................................... $25,036,546
-----------
Operating expenses
Investment advisory .................................. 2,105,190
Administration ....................................... 424,531
Custodian ............................................ 99,000
Transfer agent ....................................... 75,000
Reports to shareholders .............................. 71,000
Independent accountants .............................. 41,000
Directors ............................................ 38,000
Registration ......................................... 38,000
Legal ................................................ 25,000
Miscellaneous ........................................ 125,071
-----------
Total operating expenses .......................... 3,041,792
-----------
Net investment income .................................. 21,994,754
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on:
Investments .......................................... (7,019,328)
Interest rate swaps .................................. 6,742,667
Futures .............................................. 1,147,001
Options written ...................................... 385
Short sales .......................................... (12,692,075)
-----------
(11,821,350)
-----------
Change in net unrealized appreciation (depreciation) on:
Investments .......................................... 9,445,134
Interest rate swaps .................................. 1,646,375
-----------
11,091,509
-----------
Net loss on investments ................................ (729,841)
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ........................... $21,264,913
===========

See Notes to Financial Statements.

<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------

RECONCILIATION OF NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS TO NET CASH
FLOWS PROVIDED BY OPERATING ACTIVITIES
Net increase in net assets resulting from
operations ..................................... $ 21,264,913
-------------
Decrease in investments .......................... 103,749,549
Net realized loss ................................ 11,821,350
Increase in unrealized appreciation .............. (11,091,509)
Decrease in interest receivable .................. 1,326,666
Increase in appreciation of interest rate swap ... (1,646,375)
Decrease in receivable for investments sold ...... 14,761,899
Decrease in interest payable ..................... (436,698)
Decrease in accrued expenses and other liabilities (1,517,990)
-------------
Total adjustments .............................. 116,966,892
-------------
Net cash flows provided by operating activities .. $ 138,231,805
=============

DECREASE IN CASH

Net cash flows provided by operating activities .. $ 138,231,805
-------------
Cash flows used for financing activities:

Decrease in reverse repurchase agreements ...... (120,150,975)
Cash dividends paid ............................ (18,256,325)
-------------
Net cash flows used for financing activities ..... (138,407,300)
-------------
Net decrease in cash ............................. (175,495)
Cash at beginning of period ...................... 185,451
-------------
Cash at end of period ............................ $ 9,956
=============

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
STATEMENTS OF CHANGES
IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------

SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
2000 1999
------------ ------------

INCREASE (DECREASE) IN
NET ASSETS

Operations:
Net investment income ....... $ 21,994,754 $ 56,908,006

Net realized loss ........... (11,821,350) (4,571,547)

Net change in unrealized
appreciation (depreciation) 11,091,509 (38,218,473)
------------ ------------

Net increase in net assets
resulting from operations . 21,264,913 14,117,986

Dividends from net
investment income ......... (14,557,225) (47,473,312)
------------
Total increase (decrease) ... 6,707,688 (33,355,326)

NET ASSETS

Beginning of period ........... 933,822,172 967,177,498
------------ ------------
End of period (including
undistributed net investment
income of $51,155,642 and
$43,718,113, respectively) .. $940,529,860 $933,822,172
============ ============

See Notes to Financial Statements.

<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ............. $ 9.78 $ 10.13 $ 9.89 $ 9.82 $ 10.02 $ 9.01
-------- -------- -------- -------- -------- --------
Net investment income (net of
interest expense of $0.13, $0.21, $0.27,
$0.27, $0.28 and $0.36, respectively) ........ 0.23 0.62 0.52 0.64 0.68 0.72
Net realized and unrealized gain (loss) ........ (0.01) (0.47) 0.26 -- (0.31) 0.99
-------- -------- -------- -------- -------- --------
Net increase from investment operations .......... 0.22 0.15 0.78 0.64 0.37 1.71
-------- -------- -------- -------- -------- --------
Dividends from net investment income ............. (0.15) (0.50) (0.54) (0.57) (0.57) (0.70)
-------- -------- -------- -------- -------- --------
Net asset value, end of period* .................. $ 9.85 $ 9.78 $ 10.13 $ 9.89 $ 9.82 $ 10.02
======== ======== ======== ======== ======== ========
Market value, end of period* ..................... $ 9.625 $ 9.625 $ 9.75 $ 9.31 $ 8.88 $ 8.75
======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN+ ......................... 1.56% 3.93% 10.79% 11.64% 7.94% 16.34%

RATIOS TO AVERAGE NET ASSETS:
Operating expenses ............................... 0.66%+++ 0.65% 0.66% 0.68% 0.73% 0.75%
Operating expenses and interest expense .......... 3.25%+++ 2.76% 3.34% 3.43% 3.57% 4.53
Operating expenses, interest expense
and excise taxes ............................... 3.25%+++ 2.93% 3.43% 3.47% 3.64% 4.54%
Net investment income ............................ 4.75%+++ 5.97% 5.23% 6.49% 6.89% 7.57%

SUPPLEMENTAL DATA:

Average net assets (in thousands) ................ $930,527 $952,606 $957,474 $937,236 $936,823 $918,344
Portfolio turnover rate .......................... 63% 12% 76% 161% 95% 118%
Net assets, end of period (in thousands) ......... $940,530 $933,822 $967,177 $943,844 $937,340 $956,922
Reverse repurchase agreements outstanding,
end of period (in thousands) ................... $250,751 $370,902 $316,217 $371,015 $368,550 $428,825
Asset coverage++ ................................. $ 4,751 $ 3,518 $ 4,059 $ 3,544 $ 3,543 $ 3,231
</TABLE>

---------------
* Net asset value and market value are published in BARRON's on Saturday and
THE WALL STREET JOURNAL on Monday.
+ Total investment return is calculated assuming a purchase of common stock
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends are
assumed, for purposes of this calculation, to be reinvested at prices
obtained under the Trust's dividend reinvestment plan. Total investment
return does not reflect brokerage commissions. Total investment returns for
the period of less than one year has not been annualized.
++ Per $1,000 of reverse repurchase agreement outstanding.
+++ Annualized

The information above represents the unaudited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data, for each of the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's shares.

See Notes to Financial Statements.

<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------

NOTE 1. ORGANIZATION & POLICIES ACCOUNTING

The BlackRock Target Term Trust Inc. (the "Trust"), a Maryland corporation, is a
diversified, closed-end management investment company. The primary investment
objective of the Trust is to manage a portfolio of investment grade fixed income
securities that will return $10 per share (the initial offering price per share)
to investors on or shortly before December 31, 2000. The ability of issuers of
debt securities held by the Trust to meet their obligations may be affected by
economic developments in a specific industry or region. No assurance can be
given that the Trust's investment objective will be achieved.

The following is a summary of significant accounting policies followed by the
Trust.

SECURITIES VALUATION: The Trust values mortgage-backed, asset-backed, and other
debt securities, interest rate swaps, caps, floors and non-exchange traded
options on the basis of current market quotations provided by dealers or pricing
services approved by the Trust's Board of Directors. In determining the value of
a particular security, pricing services may use certain information with respect
to transactions in such securities, quotations from dealers, market transactions
in comparable securities, various relationships observed in the market between
securities, and calculated yield measures based on valuation technology commonly
employed in the market for such securities. Exchange-traded options are valued
at their last sales price as of the close of options trading on the applicable
exchanges. In the absence of a last sale, options are valued at the average of
the quoted bid and asked prices as of the close of business. A futures contract
is valued at the last sale price as of the close of the commodities exchange on
which it trades. Short-term securities are valued at amortized cost. Any
securities or other assets for which such current market quotations are not
readily available are valued at fair value as determined in good faith under
procedures established by and under the general supervision and responsibility
of the Trust's Board of Directors.

REPURCHASE AGREEMENTS: In connection with transactions in repurchase agreements,
the Trust's custodian takes possession of the underlying collateral securities,
the value of which at least equals the principal amount of the repurchase
transaction, including accrued interest. To the extent that any repurchase
transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to ensure the adequacy of the collateral. If
the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Trust may be delayed or limited.

OPTION SELLING/PURCHASING: When the Trust sells or purchases an option, an
amount equal to the premium received or paid by the Trust is recorded as a
liability or an asset and is subsequently adjusted to the current market value
of the option written or purchased. Premiums received or paid from writing or
purchasing options which expire unexercised are treated by the Trust on the
expiration date as realized gains or losses. The difference between the premium
and the amount paid or received on effecting a closing purchase or sale
transaction, including brokerage commissions, is also treated as a realized gain
or loss. If an option is exercised, the premium paid or received is added to the
proceeds from the sale or cost of the purchase in determining whether the Trust
has realized a gain or a loss on investment transactions. The Trust, as writer
of an option, may have no control over whether the underlying securities may be
sold (call) or purchased (put) and as a result bears the market risk of an
unfavorable change in the price of the security underlying the written option.

Options, when used by the Trust, help in maintaining a targeted duration.
Duration is a measure of the price sensitivity of a security or a portfolio to
relative changes in interest rates. For instance, a duration of "one" means that
a portfolio's or a security's price would be expected to change by approximately
one percent with a one percent change in interest rates, while a duration of
five would imply that the price would move approximately five percent in
relation to a one percent change in interest rates.

Option selling and purchasing is used by the Trust to effectively hedge
positions, or collections of positions, so that changes in interest rates do not
change the duration of the portfolio unexpectedly. In general, the Trust uses
options to hedge a long or short position or an overall portfolio that is longer
or shorter than the benchmark security. A call option gives the purchaser of the
option the right (but not obligation) to buy, and obligates the seller to sell
(when the option is exercised), the underlying position at the exercise price at
any time or at a specified time during the option period. A put option gives the
holder the right to sell and obligates the writer to buy the underlying position
at the exercise price at any time or at a specified time during the option
period. Put options can be purchased to effectively hedge a position or a
portfolio against price declines if a portfolio is long. In the same sense, call
options can be purchased to hedge a portfolio that is shorter than its benchmark
against price changes. The Trust can also sell (or write) covered call options
and put options to hedge portfolio positions.

<PAGE>

The main risk that is associated with purchasing options is that the option
expires without being exercised. In this case, the option expires worthless and
the premium paid for the option is considered the loss. The risk associated with
writing call options is that the Trust may forego the opportunity for a profit
if the market value of the underlying position increases and the option is
exercised. The risk in writing put options is that the Trust may incur a loss if
the market value of the underlying position decreases and the option is
exercised. In addition, as with futures contracts, the Trust risks not being
able to enter into a closing transaction for the written option as the result of
an illiquid market.

INTEREST RATE SWAPS: In an interest rate swap, one investor pays a floating rate
of interest on a notional principal amount and receives a fixed rate of interest
on the same notional principal amount for a specified period of time.
Alternatively, an investor may pay a fixed rate and receive a floating rate.
Interest rate swaps were conceived as asset/liability management tools. In more
complex swaps, the notional principal amount may decline (or amortize) over
time.

During the term of the swap, changes in the value of the swap are recognized
as unrealized gains or losses by "marking-to-market"to reflect the market value
of the swap. When the swap is terminated, the Trust will record a realized gain
or loss equal to the difference between the proceeds from (or cost of) the
closing transaction and the Trust's basis in the contract, if any.

The Trust is exposed to credit loss in the event of non- performance by the
other party to the interest rate swap. However, the Trust does not anticipate
non-performance by any counterparty.

SWAP OPTIONS: Swap options are similar to options on securities except that
instead of selling or purchasing the right to buy or sell a security, the writer
or purchaser of the swap option is granting or buying the right to enter into a
previously agreed upon interest rate swap agreement at any time before the
expiration of the option. Premiums received or paid from writing or purchasing
options are recorded as liabilities or assets and are subsequently adjusted to
the current market value of the option written or purchased. Premiums received
or paid from writing or purchasing options which expire unexercised are treated
by the Trust on the expiration date as realized gains or losses. The difference
between the premium and the amount paid or received on effecting a closing
purchase or sale transaction, including brokerage commission, is also treated as
a realized gain or loss. If an option is exercised, the premium paid or received
is added to the proceeds from the sale or cost of the purchase in determining
whether the Trust has realized a gain or loss on investment transactions.

The main risk that is associated with purchasing swap options is that the
swap option expires without being exercised. In this case, the option expires
worthless and the premium paid for the swap option is considered the loss. The
main risk that is associated with the writing of a swap option is the market
risk of an unfavorable change in the value of the interest rate swap underlying
the written swap option.

Swap options may be used by the Trust to manage the duration of the Trust's
portfolio in a manner similar to more generic options described above.

FINANCIAL FUTURES CONTRACTS: A futures contract is an agreement between two
parties to buy or sell a financial instrument for a set price on a future date.
Initial margin deposits are made upon entering into futures contracts and can be
either cash or securities. During the period that the futures contract is open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking-to-market" on a daily basis to reflect the market value of
the contract at the end of each day's trading. Variation margin payments are
made or received, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Trust records a realized gain or loss
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Trust's basis in the contract.

Financial futures contracts, when used by the Trust, help in maintaining a
targeted duration. Futures contracts can be sold to effectively shorten an
otherwise longer duration portfolio. In the same sense, futures contracts can be
purchased to lengthen a portfolio that is shorter than its duration target.
Thus, by buying or selling futures contracts, the Trust can effectively hedge
more volatile positions so that changes in interest rates do not change the
duration of the portfolio unexpectedly.

The Trust may invest in financial futures contracts primarily for the purpose
of hedging its existing portfolio securities or securities the Trust intends to
purchase against fluctuations in value caused by changes in prevailing market
interest rates. Should interest rates move unexpectedly, the Trust may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss. The use of futures transactions involves the risk of imperfect
correlation in movements in the price of futures contracts, interest rates and
the underlying hedged assets. The Trust is also at risk of not being able to
enter into a closing transaction for the futures contract because of an illiquid
secondary market. In addition, since futures are used to shorten or lengthen a
portfolio's duration, there is a risk that the portfolio may have temporarily
performed better without the hedge or that the Trust may lose the

<PAGE>

opportunity to realize appreciation in the market price of the underlying
positions.

SHORT SALES: The Trust may make short sales of securities as a method of hedging
potential price declines in similar securities owned. When the Trust makes a
short sale, it may borrow the security sold short and deliver it to the
broker-dealer through which it made the short sale as collateral for its
obligation to deliver the security upon conclusion of the sale. The Trust may
have to pay a fee to borrow the particular securities and may be obligated to
pay over any premiums received on such borrowed securities. A gain, limited to
the price at which the Trust sold the security short, or a loss, unlimited as to
dollar amount, will be recognized upon the termination of a short sale if the
market price is less or greater than the proceeds originally received.

SECURITY LENDING: The Trust may lend its portfolio securities to qualified
institutions. The loans are secured by collateral at least equal, at all times,
to the market value of the securities loaned. The Trust may bear the risk of
delay in recovery of, or even loss of rights in, the securities loaned should
the borrower of the securities fail financially. The Trust receives compensation
for lending its securities in the form of interest on the loan. The Trust also
continues to receive interest on the securities loaned, and any gain or loss in
the market price of the securities loaned that may occur during the term of the
loan will be for the account of the Trust.

The Trust did not engage in security lending during the period ended June 30,
2000.

INTEREST RATE CAPS: Interest rate caps are similar to interest rate swaps,
except that one party agrees to pay a fee, while the other party pays the
excess, if any, of a floating rate over a specified fixed or floating rate.

Interest rate caps are intended to both manage the duration of the Trust's
portfolio and its exposure to changes in short-term rates. Owning interest rate
caps reduces the portfolio's duration, making it less sensitive to changes in
interest rates from a market value perspective. The effect on income involves
protection from rising short-term rates, which the Trust experiences primarily
in the form of leverage.

The Trust is exposed to credit loss in the event of non-performance by the
other party to the interest rate cap. However, the Trust does not anticipate
non-performance by any counterparty.

Transaction fees paid or received by the Trust are recognized as assets or
liabilities and amortized or accreted into interest expense or income over the
life of the interest rate cap. The asset or liability is subsequently adjusted
to the current market value of the interest rate cap purchased or sold. Changes
in the value of the interest rate cap are recognized as unrealized gains and
losses.

INTEREST RATE FLOORS: Interest rate floors are similar to interest rate swaps,
except that one party agrees to pay a fee, while the other party pays the
deficiency, if any, of a floating rate under a specified fixed or floating rate.

Interest rate floors are used by the Trust to both manage the
duration of the portfolio and its exposure to changes in short-term interest
rates. Selling interest rate floors reduces the portfolio's duration, making it
less sensitive to changes in interest rates from a market value perspective. The
Trust's leverage provides extra income in a period of falling rates. Selling
floors reduces some of that advantage by partially monetizing it as an up front
payment which the Trust receives.

The Trust is exposed to credit loss in the event of non-performance by the
other party to the interest rate floor. However, the Trust does not anticipate
non-performance by any counterparty.

Transaction fees paid or received by the Trust are recognized as assets or
liabilities and amortized or accreted into interest expense or income over the
life of the interest rate floor. The asset or liability is subsequently adjusted
to the current market value of the interest rate floor purchased or sold.
Changes in the value of the interest rate floor are recognized as unrealized
gains and losses.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust accretes discount and amortizes premium on
securities purchased using the interest method.

FEDERAL INCOME TAXES: It is the Trust's intention to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute sufficient taxable income to shareholders.
Therefore, no federal income tax provision is required. As part of its tax
planning strategy, the Trust may retain a portion of its taxable income and pay
an excise tax on the undistributed amounts.

DIVIDENDS AND DISTRIBUTIONS: The Trust declares and pays dividends and
distributions monthly, first from net investment income, then from net realized
short-term capital gains and other sources, if necessary. Net long-term capital
gains, if any, in excess of loss carryforwards may be distributed annually.
Dividends and distributions are recorded on the ex-dividend date.

Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.

<PAGE>

ESTIMATES: The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.

NOTE 2. AGREEMENTS

The Trust has an Investment Advisory Agreement with BlackRock Advisors, Inc.
(the "Advisor"), which is a wholly-owned subsidiary of BlackRock, Inc., which in
turn is an indirect majority-owned subsidiary of PNCFinancial Services Group,
Inc. The Trust has an Administration Agreement with Prudential Investments Fund
Management LLC ("PIFM"), a wholly-owned subsidiary of The Prudential Insurance
Co. of America.

The investment advisory fee paid to the Advisor is computed weekly and
payable monthly at an annual rate of 0.45% of the Trust's average weekly net
assets. The administration fee paid to PIFM is also computed weekly and payable
monthly at an annual rate of 0.10% of the first $500 million of the Trust's
average weekly net assets and 0.08% of any excess.

Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Advisor. PIFM pays occupancy and certain clerical
and accounting costs of the Trust. The Trust bears all other costs and expenses.

NOTE 3. PORTFOLIO SECURITIES

Purchases and sales of investment securities, other than short-term investments
and dollar rolls, for the period ended June 30, 2000 aggre-gated $682,821,151
and $1,107,405,717, respectively.

The Trust may invest up to 40% of its total assets in securities which are
not readily marketable, including those which are restricted as to disposition
under securities law ("restricted securities"). At June 30, 2000, the Trust held
4.7% of its net assets in securities that were not readily marketable.

The Trust may from time to time purchase in the secondary market certain
mortgage pass-through securities packaged or master serviced by affiliates such
as PNC Mortgage Securities Corp. (or Sears Mortgage if PNC Mortgage Securities
Corp. succeeded to rights and duties of Sears) or mortgage related securities
containing loans or mortgages originated by PNC Bank or its affiliates,
including Midland Loan Services, Inc. It is possible under certain
circumstances, PNC Mortgage Securities Corp. or its affiliates, including
Midland Loan Services, Inc., could have interests that are in conflict with the
holders of these mortgage backed securities, and such holders could have rights
against PNC Mortgage Securities Corp. or its affiliates, including Midland Loan
Services, Inc.

The federal income tax basis of the Trust's investments at June 30, 2000 was
substantially the same as the basis for financial reporting and accordingly, net
unrealized appreciation for federal income tax purposes was $8,477,174 (gross
unrealized appreciation--$17,815,139; gross unrealized depreciation--
$9,337,965.)

For federal income tax purposes, the Trust had a capital loss carryforward at
December 31, 1999 of approximately $5,594,000 which will expire at the
termination of the Trust. Accordingly, no capital gain distribution is expected
to be paid to shareholders until net gains have been realized in excess of such
amount.

Details of open interest rate swaps at June 30, 2000 are as follows:

<TABLE>
<CAPTION>
NOTIONAL UNREALIZED
AMOUNT FLOATING TERMINATION APPRECIATION
(000) TYPE FIXED RATE RATE DATE (DEPRECIATION)
-------- ------ ---------- -------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Short Position:
$50,000 Interest Rate 7.25% 3 mo. LIBOR 04/20/10 $ (56,640)
Long Position:
$50,000 Interest Rate 7.47% 3 mo. LIBOR 02/04/10 1,703,015
----------
$1,646,375
==========
</TABLE>

NOTE 4. BORROWINGS

REVERSE REPURCHASE AGREEMENTS: The Trust may enter into reverse repurchase
agreements with qualified, third party broker-dealers as determined by and under
the direction of the Trust's Board of Directors. Interest on the value of
reverse repurchase agreements issued and outstanding will be based upon
competitive market rates at the time of issuance. At the time the Trust enters
into a reverse repurchase agreement, it will establish and maintain a segregated
account with the lender, the value of which at least equals the principal amount
of the reverse repurchase transactions including accrued interest.

The average daily balance of reverse repurchase agreements outstanding during
the period ended June 30, 2000 was $388,505,762 at a weighted average interest
rate of approximately 6.22%. The maximum amount of reverse repurchase agreements
outstanding at any month-end during the period ended June 30, 2000 was
$440,588,492 as of April 30, 2000 which was 32% of total assets.

DOLLAR ROLLS: The Trust may enter into dollar rolls in which the Trust sells
securities for delivery in the current month and simultaneously contracts to
repurchase substantially similar (same type, coupon and maturity) securities on
a specified future date. During the roll period the Trust forgoes principal

<PAGE>

and interest paid on the securities. The Trust will be compensated by the
interest earned on the cash proceeds of the initial sale and by the lower
repurchase price at the future date.

The Trust did not engage in dollar rolls during the period ended June 30,
2000.

NOTE 5. CAPITAL

There are 200 million shares of $.01 par value common stock authorized. Of the
95,460,639 shares outstanding at June 30, 2000, the Advisor owned 10,639 shares.

NOTE 6. DIVIDENDS

Subsequent to June 30, 2000, the Board of Directors of the Trust declared a
dividend from undistributed earnings of $0.025 per common share payable July 31,
2000 to shareholders of record on July 14, 2000.

<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
DIVIDEND REINVESTMENT PLAN
--------------------------------------------------------------------------------

Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions of dividends and capital gains
reinvested by State Street Bank and Trust Company (the "Plan Agent") in Trust
shares pursuant to the Plan. Shareholders who do not participate in the Plan
will receive all distributions in cash paid by check in United States dollars
mailed directly to the shareholders of record (or if the shares are held in
street or other nominee name, then to the nominee) by the transfer agent, as
dividend disbursing agent.

The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange or elsewhere, for the participants' accounts. The Trust will not
issue any new shares in connection with the Plan.

Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment will be made for any fraction of a Trust share.

The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by the Trust. However, each participant will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income taxes that
may be payable on such dividends or distributions.

The Trust reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all shareholders of the Trust at least 90 days before the record date
for the dividend or distribution. The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days' written notice to all shareholders of the
Trust. All correspondence concerning the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The addresses are on the front of this report.

<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------

ANNUAL MEETING OF TRUST SHAREHOLDERS. There have been no material changes
in the Trust's investment objectives or policies that have not been approved by
the shareholders or to its charter or by-laws or in the principal risk factors
associated with investment in the Trust. There have been no changes in the
persons who are primarily responsible for the day-to-day management of the
Trust's Portfolio.

The Annual Meeting of Trust Shareholders was held May 18, 2000 to vote
on the following matters:
(1) To elect two Directors as follows:

DIRECTOR CLASS TERM EXPIRING
------- ----- ----- -------
Richard E. Cavanagh ............. I 3 years 2003
James Clayburn La Force, Jr. .... I 3 years 2003

Directors whose term of office continues beyond this meeting are Andrew
F. Brimmer, Kent Dixon, Frank J. Fabozzi, Laurence D. Fink, Walter F.
Mondale and Ralph L. Schlosstein.

(2) To ratify the selection of Deloitte & Touche LLP as independent public
accountants of the Trust for the fiscal year ending December 31, 2000.

Shareholders elected the two Directors and ratified the selection of
Deloitte & Touche LLP. The results of the voting was as follows.

<TABLE>
<CAPTION>
VOTES FOR VOTES AGAINST ABSTENTIONS
--------- ------------- -----------
<S> <C> <C> <C>
Richard E. Cavanagh 74,252,305 -- 1,800,037
James Clayburn LaForce, Jr. 74,138,238 -- 1,914,104
Ratification of Deloitte & Touche LLP 75,089,106 364,409 598,827
</TABLE>

<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
INVESTMENT SUMMARY
--------------------------------------------------------------------------------

THE TRUST'S INVESTMENT OBJECTIVE

The BlackRock Target Term Trust Inc.'s primary investment objective is to manage
a portfolio of investment grade fixed income securities that will return $10 per
share (the initial public offering price per share) to investors on or shortly
before December 31, 2000.

WHO MANAGES THE TRUST?

BlackRock Advisors, Inc. (the "Advisor") is an SEC-registered investment
advisor. As of June 30, 2000, the "Advisor" and its affiliates (together,
"BlackRock") managed $177 billion on behalf of taxable and tax-exempt clients
worldwide. Strategies include fixed income, equity and cash and may incorporate
both domestic and international securities. Domestic fixed income strategies
utilize the government, mortgage, corporate and municipal bond sectors.
BlackRock manages twenty-two closed-end funds that are traded on either the New
York or American stock exchanges, and a $28 billion family of open-end funds.
BlackRock manages over 629 accounts, domiciled in the United States and
overseas.

WHAT CAN THE TRUST INVEST IN?

The Trust may invest in all fixed income securities rated investment grade or
higher ("AAA", "AA", "A" or "BBB"). Examples of securities in which the Trust
may invest include U.S. government and government agency securities, zero coupon
securities, mortgage-backed securities, corporate debt securities, asset-backed
securities, U.S. dollar-denominated foreign debt securities and municipal
securities. Under current market conditions, BlackRock expects that the primary
investments of the Trust will be U.S. government securities, securities backed
by government agencies (such as mortgage-backed securities) and corporate debt
securities.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor will seek to meet the Trust's investment objective by managing the
assets of the Trust so as to return the initial offering price ($10 per share)
at maturity. The Advisor will implement a conservative strategy that will seek
to closely match the maturity of the assets of the portfolio with the future
return of the initial investment at the end of 2000. At the Trust's termination,
the Advisor expects that the value of the securities which have matured,
combined with the value of the securities that are sold will be sufficient to
return the initial offering price to investors. On a continuous basis, the Trust
will seek its objective by actively managing its assets in relation to market
conditions, interest rate changes and, importantly, the remaining term to
maturity of the Trust.

In order to maintain competitive yields as the Trust approaches maturity and
depending on market conditions, the Advisor will attempt to purchase securities
with call protection or maturities as close to the Trust's maturity date as
possible. Securities with call protection should provide the portfolio with some
degree of protection against reinvestment risk during times of lower prevailing
interest rates. Since the Trust's primary goal is to return the initial offering
price at maturity, any cash that the Trust receives prior to its maturity date
(i.e. cash from early and regularly scheduled payments of principal on
mortgage-backed securities) will be reinvested in securities with maturities
which coincide with the remaining term of the Trust. Since shorter-term
securities typically yield less than longer-term securities, this strategy will
likely result in a decline in the Trust's income over time. It is important to
note that the Trust will be managed so as to preserve the integrity of the
return of the initial offering price.

<PAGE>

HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS
REGULARLY? The Trust's shares are traded on the New York Stock Exchange which
provides investors with liquidity on a daily basis. Orders to buy or sell shares
of the Trust must be placed through a registered broker or financial advisor.
The Trust pays monthly dividends which are typically paid on the last business
day of the month. For shares held in the shareholder's name, dividends may be
reinvested in additional shares of the fund through the Trust's transfer agent,
State Street Bank & Trust Company. Investors who wish to hold shares in a
brokerage account should check with their financial advisor to determine whether
their brokerage firm offers dividend reinvestment services.

LEVERAGE CONSIDERATIONS IN A TERM TRUST

Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the use of reverse
repurchase agreements and dollar rolls. Leverage permits the Trust to borrow
money at short-term rates and reinvest that money in longer-term assets which
typically offer higher interest rates. The difference between the cost of the
borrowed funds and the income earned on the proceeds that are invested in longer
term assets is the benefit to the Trust from leverage.

Leverage also increases the duration (or price volatility of the net assets) of
the Trust, which can improve the performance of the fund in a declining rate
environment, but can cause net assets to decline faster than the market in a
rising environment. The Advisor's portfolio managers continuously monitor and
regularly review the Trust's use of leverage and the Trust may reduce, or
unwind, the amount of leverage employed should the Advisor consider that
reduction to be in the best interests of the shareholders.

RETURN OF INITIAL INVESTMENT. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved.

DIVIDEND CONSIDERATIONS. The income and dividends paid by the Trust are likely
to decline to some extent over the term of the Trust due to the anticipated
shortening of the dollar-weighted average maturity of the Trust's assets.

INTEREST-ONLY SECURITIES (IO). The yield to maturity on an IO class is extremely
sensitive to the rate of principal payments (including prepayments) on the
related underlying mortgage assets, and a rapid rate of principal payments may
have a material adverse effect on such security's yield to maturity. If the
underlying mortgage assets experience greater than anticipated prepayments of
principal, the Trust may fail to recoup fully its initial investment in these
securities even if the securities are rated AAA by S&P or Aaa by Moody's.

LEVERAGE. The Trust utilizes leverage through reverse repurchase agreements and
dollar rolls, which involves special risks. The Trust's net asset value and
market value may be more volatile due to its use of leverage.

MARKET PRICE OF SHARES. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange (NYSE symbol: BTT) and as such
are subject to supply and demand influences. As a result, shares may trade at a
discount or a premium to their net asset value.

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES. The cash flow and yield
characteristics of these securities differ from traditional debt securities. The
major differences typically include more frequent payments and the possibility
of prepayments which will change the yield to maturity of the security.

CORPORATE DEBT SECURITIES. The value of corporate debt securities generally
varies inversely with changes in prevailing market interest rates. The Trust may
be subject to certain reinvestment risks in environments of declining interest
rates.

ZERO COUPON SECURITIES. Such securities receive no cash flows prior to maturity,
therefore interim price movements on these securities are generally more
sensitive to interest rate movements than securities that make periodic coupon
payments. These securities appreciate in value over time and can play an
important role in helping the Trust achieve its primary objective.

ILLIQUID SECURITIES. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects to do so to only a
limited extent. These securities involve special risks.

NON-U.S. SECURITIES. The Trust may invest up to 10% of its assets in non-U.S.
dollar-denominated securities which involve special risks such as currency,
political and economic risks, although under current market conditions does not
do so.

ANTITAKEOVER PROVISIONS. Certain antitakeover provisions will make a change in
the Trust's business or management more difficult without the approval of the
Trust's Board of Directors and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.

<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
GLOSSARY
--------------------------------------------------------------------------------

ADJUSTABLE RATE MORTGAGE-
BACKED SECURITIES (ARMS): Mortgage instruments with interest rates that
adjust at periodic intervals at a fixed amount
over the market levels of interest rates as
reflected in specified indexes. ARMS are backed
by mortgage loans secured by real property.

ASSET-BACKED SECURITIES: Securities backed by various types of
receivables such as automobile and credit card
receivables.

CLOSED-END FUND: Investment vehicle which initially offers a
fixed number of shares and trades on a stock
exchange. The fund invests in a portfolio of
securities in accordance with its stated
investment objectives and policies.

COLLATERALIZED
MORTGAGE OBLIGATIONS (CMOS): Mortgage-backed securities which separate
mortgage pools into short-, medium-, and
long-term securities with different priorities
for receipt of principal and interest. Each
class is paid a fixed or floating rate of
interest at regular intervals. Also known as
multiple-class mortgage pass-throughs.

COMMERCIAL MORTGAGE
BACKED SECURITIES (CMBS): Mortgage-backed securities secured or backed by
mortgage loans on commercial properties.

DISCOUNT: When a fund's net asset value is greater than
its stock price the fund is said to be trading
at a discount.

DIVIDEND: Income generated by securities in a portfolio
and distributed to shareholders after the
deduction of expenses. This Trust declares and
pays dividends on a monthly basis.

DIVIDEND REINVESTMENT: Shareholders may elect to have all
distributions of dividends and capital gains
automatically reinvested into additional shares
of the Trust.

FHA: Federal Housing Administration, a government
agency that facilitates a secondary mortgage
market by providing an agency that guarantees
timely payment of interest and principal on
mortgages.

FHLMC: Federal Home Loan Mortgage Corporation, a
publicly owned, federally chartered corporation
that facilitates a secondary mortgage market by
purchasing mortgages from lenders such as
savings institutions and reselling them to
investors by means of mortgage-backed
securities. Obligations of FHLMC are not
guaranteed by the U.S. government, however;
they are backed by FHLMC's authority to borrow
from the U.S. government. Also known as Freddie
Mac.

FNMA: Federal National Mortgage Association, a
publicly owned, federally chartered corporation
that facilitates a secondary mortgage market by
purchasing mortgages from lenders such as
savings institutions and reselling them to
investors by means of mortgage-backed
securities. Obligations of FNMA are not
guaranteed by the U.S. government, however;
they are backed by FNMA's authority to borrow
from the U.S. government. Also known as Fannie
Mae.

GNMA: Government National Mortgage Association, a
government agency that facilitates a secondary
mortgage market by providing an agency that
guarantees timely payment of interest and
principal on mortgages. GNMA's obligations are
supported by the full faith and credit of the
U.S. Treasury. Also known as Ginnie Mae.

<PAGE>

GOVERNMENT SECURITIES: Securities issued or guaranteed by the U.S.
government, or one of its agencies or
instrumentalities, such as GNMA, FNMA and
FHLMC.

INTEREST-ONLY SECURITIES: Mortgage securities including CMBS that receive
only the interest cash flows from an underlying
pool of mortgage loans or underlying
pass-through securities.

INVERSE-FLOATING RATE Mortgage instruments with coupons that adjust
MORTGAGES: at periodic intervals according to a formula
which sets inversely with a market level
interest rate index.

MARKET PRICE: Price per share of a security trading in the
secondary market. For a closed-end fund, this
is the price at which one share of the fund
trades on the stock exchange. If you were to
buy or sell shares, you would pay or receive
the market price.

MORTGAGE DOLLAR ROLLS: A mortgage dollar roll is a transaction in
which the Trust sells mortgage-backed
securities for delivery in the current month
and simultaneously contracts to repurchase
substantially similar (although not the same)
securities on a specified future date. During
the "roll" period, the Trust does not receive
principal and interest payments on the
securities, but is compensated for giving up
these payments by the difference in the current
sales price (for which the security is sold)
and lower price that the Trust pays for the
similar security at the end date as well as the
interest earned on the cash proceeds of the
initial sale.

MORTGAGE PASS-THROUGHS: Mortgage-backed securities issued by FNMA,
FHLMC, GMMA or FHA.

NET ASSET VALUE (NAV): Net asset value is the total market value of
all securities and other assets held by the
Trust, plus income accrued on its investments,
minus any liabilities including accrued
expenses, divided by the total number of
outstanding shares. It is the underlying value
of a single share on a given day. Net asset
value for the Trust is calculated weekly and
published in BARRON'S on Saturday and THE WALL
STREET JOURNAL on Monday.

PRINCIPAL-ONLY SECURITIES: Mortgage securities that receive only the
principal cash flows from an underlying pool of
mortgage loans or underlying pass-through
securities.

PROJECT LOANS: Mortgages for multi-family, low- to
middle-income housing.

PREMIUM: When a fund's stock price is greater than its
net asset value, the fund is said to be trading
at a premium.

REMIC: A real estate mortgage investment conduit is a
multiple-class security backed by
mortgage-backed securities or whole mortgage
loans and formed as a trust, corporation,
partnership, or segregated pool of assets that
elects to be treated as a REMIC for federal tax
purposes. Generally, FNMA REMICs are formed as
trusts and are backed by mortgage-backed
securities.

RESIDUALS: Securities issued in connection with
collateralized mortgage obligations that
generally represent the excess cash flow from
the mortgage assets underlying the CMO after
payment of principal and interest on the other
CMO securities and related administrative
expenses.

REVERSE REPURCHASE
AGREEMENTS: In a reverse repurchase agreement, the Trust
sells securities and agrees to repurchase them
at a mutually agreed date and price. During
this time, the Trust continues to receive the
principal and interest payments from that
security. At the end of the term, the Trust
receives the same securities that were sold for
the same initial dollar amount plus interest on
the cash proceeds of the initial sale.

STRIPPED MORTGAGE-BACKED
SECURITIES: Arrangements in which a pool of assets is
separated into two classes that receive
different proportions of the interest and
principal distributions from underlying
mortgage-backed securities. IO's and PO's are
examples of strips.

<PAGE>

--------------------------------------------------------------------------------
BLACKROCK ADVISORS, INC.
SUMMARY OF CLOSED-END FUNDS
--------------------------------------------------------------------------------

TAXABLE TRUSTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK MATURITY
SYMBOL DATE
------ ------
<S> <C> <C>
PERPETUAL TRUSTS
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
The BlackRock High Yield Trust BHY N/A

TERM TRUSTS

The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BTM 06/01
The BlackRock Strategic Term Trust Inc. BGT 12/02
The BlackRock Investment Quality Term Trust Inc. BQT 12/04
The BlackRock Advantage Term Trust Inc. BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. BCT 12/09
</TABLE>

TAX-EXEMPT TRUSTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK MATURITY
SYMBOL DATE
------ ------
<S> <C> <C>
PERPETUAL TRUSTS
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A
The BlackRock Pennsylvania Strategic Municipal Trust BPS N/A
The BlackRock Strategic Municipal Trust BSD N/A

TERM TRUSTS

The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10
</TABLE>

IF YOU WOULD LIKE FURTHER INFORMATION PLEASE DO NOT HESITATE TO CALL BLACKROCK
AT (800) 227-7BFM (7236) OR CONSULT WITH YOUR FINANCIAL ADVISOR.

<PAGE>

----------
BLACKROCK
----------

DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein

OFFICERS
Ralph L. Schlosstein, PRESIDENT
Scott Amero, VICE PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY

INVESTMENT ADVISOR
BlackRock Advisors, Inc.
400 Bellevue Parkway
Wilmington, DE19809
(800) 227-7BFM

ADMINISTRATOR

Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077

CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM

INDEPENDENT ACCOUNTANTS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434

LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036

LEGAL COUNSEL -- INDEPENDENT DIRECTORS
Debevoise & Plimpton
875 Third Avenue
New York, NY 10022

The accompanying financial statements as of June 30, 2000 were not audited
and accordingly, no opinion is expressed on them.

This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of any securities.

THE BLACKROCK TARGET TERM TRUST INC.
c/o Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 227-7BFM

THE BLACKROCK
TARGET
TERM TRUST INC.
=========================
SEMI-ANNUAL REPORT
JUNE 30, 2000

[Graphic Omitted]

[Recycle Logo] Printed on recycled paper 092476-10-0