BLACKROCK TARGET TERM TRUST INC, N-30D, 2000-03-01

BLACKROCK TARGET TERM TRUST INC
N-30D, 2000-03-01

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

January 31, 2000
Dear Shareholder:

After easing monetary policy three times during the fourth quarter of
1998, the Federal Reserve reversed its trend by raising the Fed funds target
rate 75 basis points (to 5.50%) over the course of 1999 in response to robust
GDP, low unemployment and rising equity prices. U.S. Treasury yields rose
significantly during the past twelve months, with the yield of the 30-year
Treasury rising above 6.00% for the first time since May 1998.

Despite the rise in Treasury yields, continued strong economic growth may
spur the Federal Reserve to proactively fight perceived inflation through
continued monetary policy tightening in 2000. Until the inflation picture
becomes clearer, we expect interest rates to remain largely range-bound.
Accordingly, we will continue to seek the most attractive relative value
opportunities and utilize our proprietary risk management systems to help the
Trust to achieve its investment objectives.

This report contains a summary of market conditions during the annual
period and a review of portfolio strategy by your Trust's managers in addition
to the Trust's audited financial statements and a detailed portfolio 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

1
<PAGE>
January 31, 2000

Dear Shareholder:

We are pleased to present the annual report for The BlackRock Target Term
Trust Inc. ("the Trust") for the year ended December 31, 1999. 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 primary 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 believes 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 (the market value of its assets per share) over the period:

12/31/99 12/31/98 CHANGE HIGH LOW
-------- -------- ------ ---- ---
STOCK PRICE $9.625 $9.75 (1.28%) $9.8125 $9.4375
NET ASSET VALUE (NAV) $9.78 $10.13 (3.46%) $10.18 $9.78
5-YEAR U.S. TREASURY NOTE 6.34% 4.54% 39.65% 6.34% 4.46%

THE FIXED INCOME MARKETS

Despite the complete reversal of last year's 0.75% easing by the Federal
Reserve, the expansion of the U.S. economy continues intact. At the end of 1999,
the labor markets remain tight, economic growth remains strong and inflation
pressures appear restrained by offsetting gains in productivity. However, the
factors that should eventually lead to higher interest rates also remain intact:
higher equity and commodity prices, a confident consumer, labor markets that
continue to tighten and a global recovery that will boost U.S. exports and
reduce the trade deficit. Along with consumer confidence, consumer credit
continues to advance as evidenced in remarkably strong holiday sales.

Although the Federal Open Market Committee took no action at their
December meeting, this should not be interpreted to mean that the threat of
inflationary forces has dissipated. We expect that continued above-trend
economic strength, tight labor markets and the need to drain the excess
liquidity that the Fed provided the financial markets in the months leading up
to Y2K will warrant additional Fed tightening in 2000. Despite our outlook for
additional Fed moves we believe that the market has adequately priced in the
degree of tightening necessary to successfully engineer an economic slow down
later this year.

Treasury yields increased significantly during 1999, continuing their
year-long slide in price. Over the course of the year the yield of the 30-year
Treasury has increased by nearly 139 basis points (1.39%). The yield of the
5-Year Treasury

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posted a net increase of 180 basis points (1.80%), beginning 1999 at 4.54% and
closing on December 31, 1999 at 6.34%. Bond prices, which move inversely to
their yields, have continued to be punished as the market reacted to strength of
the economy and uncertainty of future Fed action. During the fourth quarter, the
short and intermediate sections of the yield curve underperformed the long end
of the curve. As we move into 2000, 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.

A combination of shrinking supply, and a decline in prepayment rates in
response to a reduction in refinancing activity, allowed mortgage securities to
outperform the broader investment grade market. Falling bond prices kept
mortgages rates near 8%, which has significantly affected refinancing activity
reducing an important source of new mortgage origination. For the period ending
December 31st the LEHMAN BROTHERS MORTGAGE INDEX, mortgages posted a 1.86% total
return versus -0.82% for the LEHMAN BROTHERS AGGREGATE INDEX. As the origination
of new mortgages continues to decline, the outlook for the mortgage sector is
favorable. Despite the rich valuations of mortgages, a likely shortage of
yield-oriented products will draw investors to the mortgage sector as they
execute their investment plans in 2000.

Investment grade corporate securities underperformed the broader
investment grade bond market, as corporates measured by the MERRILL LYNCH U.S.
CORPORATE MASTER INDEX returned -1.87%, as compared to the LEHMAN BROTHERS
AGGREGATE INDEX'S -0.82%. 1999 was marked by a large supply of corporate bonds
due to M&A activity and issuers rushing to market ahead of Y2K. While we believe
M&A activity will follow through in 2000, higher rates combined with the
increased issuance in 1999 should result in a more moderate supply picture in
2000. Despite a very buoyant economic environment, credit parameters have not
been improving in the investment grade corporate bond universe raising concerns
about vulnerability to a down turn. As a result, we have generally implemented
an "up in credit" strategy in portfolios.

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, 1998 asset
composition.

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THE BLACKROCK TARGET TERM TRUST INC.
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COMPOSITION DECEMBER 31, 1999 DECEMBER 31, 1998
----------- ----------------- -----------------
Zero-Coupon Bonds 58% 53%
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Corporate Bonds 11% 11%
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Mortgage Pass-Throughs 9% 10%
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Stripped MoneyMarket Instruments 7% 6%
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U.S. Government Securities 3% 4%
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Taxable Municipal Bonds 3% 3%
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Adjustable & Inverse Floating Rate Mortgages 3% 3%
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Principal-Only Mortgage-Backed Securities 2% 3%
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Asset-Backed Securities 2% 3%
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Non-Agency Multiple Class Pass-Throughs 1% 2%
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Agency Multiple Class Pass-Throughs 1% 2%
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3
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RATING % OF CORPORATES
- --------------------------------------------------------------------------------
CREDIT RATING DECEMBER 31, 1999 DECEMBER 31, 1998
- --------------------------------------------------------------------------------
AAA or equivalent -- --
- --------------------------------------------------------------------------------
AA or equivalent 16% 8%
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A or equivalent 60% 53%
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BBB or equivalent 24% 39%
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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.

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 voted to reduce the Trust's monthly dividend from
$0.04167 ($0.50 annualized) to $0.03875 ($0.465 annualized) effective with the
December 31, 1999 dividend payment.

During the reporting period the Trust maintained its significant weighting
in Zero Coupon Bonds, investment grade corporate bonds and well-structured
mortgage securities such as commercial mortgage-backed securities.

As a result of an internal reorganization, effective January 1, 2000,
BlackRock Advisors, Inc. has replaced BlackRock Financial Management Inc., a
wholly-owned subsidiary of BlackRock Advisors, Inc. as the Advisor of the Trust.
The investment management and other personnel responsible for providing services
to the Trust did not change as a result of the reorganization. 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.

4
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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.

<PAGE>

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THE BLACKROCK TARGET TERM TRUST INC.
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
- --------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--137.4%
MORTGAGE PASS-THROUGHS--12.1%
Federal Home Loan Mortgage Corp.,
$ 4,179 5.00%, 11/01/00 - 5/01/01,
7 Year ................................. $ 4,025,471
1,052 7.50%, 2/01/07 - 6/01/09,
15 Year ................................ 1,058,041
6,949 9.00%, 5/01/07, 15 Year .................. 7,096,749
Federal National Mortgage Association,
93,488 6.50%, 9/01/25 - 7/01/29 ................. 88,139,167
6,765 8.025%, 7/01/00, Multifamily ............. 6,775,283
5,095 9.50%, 7/01/18 - 9/01/18 ................. 5,367,401
Government National Mortgage
Association,
152 9.00%, 11/15/12, 20 Year ................. 159,307
178 9.00%, 6/15/09 - 4/15/13, ................ 186,361
60 10.00%, 10/15/18, ........................ 64,244
------------
112,872,024
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AGENCY MULTIPLE CLASS MORTGAGE
PASS-THROUGHS--0.6%
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation
Certificates,
152 Series 29, Class 29-SC,
4/25/24 ................................ 152,378
2,690 Series 1425, Class 1425-G,
8/15/06 ................................ 2,682,898
28 Series 1490, Class 1490-A,
9/15/06 ................................ 28,410
1,866 Series 1613, Class 1613-E,
4/15/06 ................................ 1,840,211
874@ Federal National Mortgage Association,
REMIC Pass-Through Certificates,
Trust 1993-M2, Class M2-H,
11/25/03, Multifamily ................. 861,286
------------
5,565,183
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NON-AGENCY MULTIPLE CLASS
MORTGAGE PASS-THROUGHS--1.2%
AAA 1,116 Citicorp Mortgage Securities Inc.,
Series 1993-8, Class-A2,
3/25/07 ................................ 1,109,807
AAA 5,421 GE Capital Mortgage Services Inc.,
Series 1995-9, Class 9-A3,
11/25/25 ............................... 5,383,392
AAA 220 Residential Funding Mortgage
Securities I Inc.,
Series 1997-S18, Class-A2,
11/25/12 ............................... 218,992
AAA 4,444 Salomon Capital Access Corp.,
Series 1986-1, Class C,
9/01/15 ................................ 4,463,513
------------
11,175,704
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ADJUSTABLE & INVERSE FLOATING RATE
MORTGAGES--3.5%
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation
Certificates,
2,740 Series 1566, Class 1566-SC,
9/15/00 ................................ 2,733,939
203 Series 1580, Class 1580-S,
9/15/00 ................................ 195,489
178 Series 1608, Class 1608-SK,
11/15/22 ............................... 176,667
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
1,072 Trust 1993-81, Class 81-F,
6/25/00 ................................ 1,076,935
715 Trust 1993-81, Class 81-S,
6/25/00 ................................ 666,639
4,048 Trust 1993-81, Class 81-SB,
6/25/00 ................................ 130,096
1,231 Trust 1993-123, Class 123-F,
7/25/00 ................................ 1,235,805
656 Trust 1997-80, Class 80-SC,
4/18/08 ................................ 658,106
126 Trust 1998-38, Class 38-SE,
7/18/07 ................................ 125,769
AAA 15,343 PNC Mortgage Securities Corp.,
Series 1997-6, Class 6-A1,
10/25/26 ............................... 15,314,141
AAA 11,088 Residential Accredit Loans Inc.,
Series 1999-QS1, Class A-1,
1/25/29 ................................ 11,008,162
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33,321,748
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INTEREST ONLY MORTGAGE-BACKED
SECURITIES--0.3%
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation
Certificates,
1,053 Series 1440, Class 1440-PK,
8/15/18 ................................ 18,040
1,344 Series 1472, Class 1472-SD,
2/15/05 ................................ 6,075
663 Series 1564, Class 1564-I,
5/15/07 ................................ 49,737
3,544 Series 1702, Class 1702-PM,
10/15/16 ............................... 80,907

See Notes to Financial Statements.

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PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
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INTEREST ONLY MORTGAGE-BACKED
SECURITIES (CONTINUED)
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
$ 74 Trust 18, Class 2,
2/01/17 ................................ $ 16,866
415 Trust 1991-29, Class 29-J,
4/25/21 ................................ 134,372
4,378 Trust 1993-11, Class 11-M,
2/25/08 ................................ 417,765
2,109 Trust 1993-50, Class 50-SD,
12/25/16 ............................... 18,392
1,277 Trust 1993-96, Class 96-A,
11/25/16 ............................... 19,265
436 Trust 1993-113, Class 113-PL,
4/25/18 ................................ 7,540
5,135 Trust 1993-172, Class 172-S,
9/25/00 ................................ 89,599
5,880 Trust 1993-225, Class 225-VK,
11/25/17 ............................... 49,804
3,126 Trust 1993-G34, Class G34-PV,
2/25/17 ................................ 80,245
683 Trust 1996-54, Class 54-SG,
4/25/23 ................................ 139,604
36,574 Trust 1997-65, Class 65-SA,
9/25/00 ................................ 108,578
1,539 Trust 1998-25, Class 25-PE,
9/18/11 ................................ 42,592
AAA 9,487 Green Tree Financial Corp.,
Series 1997-D, Class H,
7.57%, 9/15/28 ....................... 483,183
AAA 5,442 Prudential-Bache CMO Trust,
Series 16, Class 16-P,
10/25/21 ............................. 894,314
-----------
2,656,878
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PRINCIPAL ONLY MORTGAGE-BACKED
SECURITIES--3.2%
AAA 457 DBL, Inc.,
Trust V, Class 1A,
9/01/18 ................................ 343,687
390 Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation
Certificates,
Series G36, Class G36-B,
4/25/24 ................................ 380,939
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
1,117 Trust 19, Class 1,
6/01/17 ................................ 893,307
167 Trust 225, Class 1,
2/01/23 ................................ 132,553
3,736 Trust 1992-23, Class 23-D,
2/25/21 ................................ 3,311,090
6,966 Trust 1992-140, Class 140-HD,
11/25/06 ............................... 6,383,807
1,309 Trust 1993-88, Class 88-C,
6/25/00 ................................ 1,286,183
5,961 Trust 1993-213, Class 213-G,
9/25/23 ................................ 5,790,348
21 Trust 1993-216, Class 216-B,
8/25/23 ................................ 20,959
2,871 Trust 1994-8, Class 8-C,
11/25/23 ............................... 2,797,446
346 Trust 1994-9, Class 9-G,
11/25/23 ............................... 344,857
5,585 Trust 1997-65, Class 65-A,
9/25/00 ................................ 5,355,687
AAA 3,083@ Prudential-Bache CMO Trust,
Series 10, Class 10-H,
4/01/19 .................................. 2,679,556
-----------
29,720,419
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COMMERCIAL MORTGAGE-BACKED
SECURITIES--0.4%
AAA 3,000 FDIC Trust,
Series 1994-C1, Class 2C,
8.45%, 9/25/25 ......................... 3,009,375
AA+ 493 Nomura Asset Capital Corp.,
Series 1993-M1, Class A-1,
7.64%, 11/25/03** ...................... 493,193
-----------
3,502,568
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ASSET-BACKED SECURITIES--2.6%
AAA 253@ Banc One Auto Grantor Trust,
Series 1996-A, Class A,
6.10%, 10/15/02 ........................ 252,152
Aaa 7,978 Brazos Student Loan Financial Corp.,
Series 1998-A, Class A1,
6.46%, 6/01/06 ...................... 7,951,356
AAA 1,108 Chevy Chase Auto Receivables,
Series 1996-1, Class A,
6.60%, 12/15/02 ..................... 1,106,675
AAA 738 Fifth Third Bank Auto Trust,
Series 1996-B, Class A,
6.45%, 3/15/02 ...................... 737,319
AAA 6,551 First Security Auto Grantor Trust,
Series 1998-A, Class A1,
5.97%, 4/15/04 ...................... 6,501,692
AAA 2,291 Keycorp Student Loan Trust,
Series 1996-A, Class A2,
6.02%, 8/27/25 ...................... 2,258,415
AAA 5,000 Standard Credit Card Master Trust,
Series 1995-3, Class A,
7.85%, 2/07/02 ...................... 5,007,812
-----------
23,815,421
-----------
U.S. GOVERNMENT AND AGENCY
SECURITIES--4.5%
U.S. Treasury Bonds,
10,399@ 3.625%, 4/15/28 (TIPS) .................. 9,287,376
5,000@ 5.50%, 8/15/28 .......................... 4,264,050
U.S. Treasury Notes,
20,000@ 4.75%, 2/15/04 .......................... 18,865,600
1,000 5.25%, 8/15/03 .......................... 964,220
2,875 5.75%, 6/30/01 .......................... 2,856,571
5,485 6.00%, 8/15/00 .......................... 5,485,878
-----------
41,723,695
-----------

See Notes to Financial Statements.

7
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PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
- --------------------------------------------------------------------------------
ZERO COUPON BONDS--79.7%
$ 2,185 Agency STRIPS, Series 1, relating to
Federal National Mortgage Association
8.95% Debentures,
Series SM-2018-A, 8/12/00 ............... $ 2,108,437
10,407 Federal Home Loan Mortgage Corp.,
5/15/00 ................................. 10,184,811
6,250 Federal Judiciary Office Building,
8/15/00 ................................. 6,012,750
16,620 Federal National Mortgage Association,
8/01/00 - 8/12/00 ....................... 16,057,098
139,485 Financing Corp. (FICO Strips),
2/08/00 - 12/27/00 ...................... 132,996,887
333 Government and Agency Term
Obligation Receipt,
11/15/00 ................................ 315,020
356 Physical Treasury Coupons,
8/15/00 ................................. 343,275
40,000 Tennessee Valley Authority,
11/01/00 ................................ 37,888,000
1,862 U.S. Treasury CUBES,
11/15/00 ................................ 1,764,990
U.S. Treasury Strips,
565,012@ 5/15/00 - 11/15/00 ...................... 537,015,878
-----------
744,687,146
-----------
TAXABLE MUNICIPAL BONDS--4.5%
Long Beach California Pension Obligation,
AAA 2,329 Zero Coupon, 3/01/00 - 9/01/00** ........ 2,236,736
Massachusetts State Housing Fin. Auth.,
AA 6,535 Series 1991-A, 6.85%, 4/01/21, F.H.A. ... 5,721,850
NR 2,435 Series C, 6.85%, 4/01/19, F.H.A. ........ 2,145,917
New York City, G.O.,
A- 10,313 Zero Coupon, 3/15/00 .................... 10,177,502
A- 10,000 7.10%, 4/15/00 .......................... 10,013,000
BBB+ 5,000 New York St. Dorm. Auth. Rev.,
Pension Obligation,
6.63%, 10/01/00 ......................... 4,984,050
BBB 1,200 New York St. Environ. Facilities Auth.,
6.49%, 9/15/00 .......................... 1,195,284
BBB 3,120 New York St. Housing Fin. Auth.,
Series B, 7.03%, 9/15/01 ................ 3,108,269
Western Minnesota Municipal Power
AAA 2,062 Agency, Zero Coupon, 1/01/00 ............ 2,061,900
-----------
41,644,508
-----------
CORPORATE BONDS--14.6%
FINANCE & BANKING--9.9%
BBB 10,000 AT&T Capital Corp.,
7.50%, 11/15/00 ......................... 10,070,800
AA- 5,210 Associates Corp. of North America,
Zero Coupon, 5/01/00 - 6/29/00** ........ 5,042,238
BBB- 8,000 Franchise Finance Corp.,
7.00%, 11/30/00 ......................... 7,905,920
A+ 10,620 Goldman Sachs Group LP,
Zero Coupon 6/15/00 - 12/15/00** ........ 10,006,264
A 8,950 Lehman Brothers, Inc.,
6.90%, 1/29/01 .......................... 8,918,496
A 4,133 Meridian Bancorp, Inc.,
Zero Coupon, 6/15/00** .................. 4,012,823
AA- 2,960 Merrill Lynch & Co., Inc.,
5.75%, 11/04/02 ......................... 2,859,034
A+ 4,128 Morgan Stanley Group, Inc.,
Zero Coupon, 2/15/00 - 2/15/01** ........ 3,834,022
BBB+ 4,140 PaineWebber Group, Inc.,
Zero Coupon, 3/01/00** .................. 4,097,689
A3 2,500 Popular Inc.,
6.40%, 8/25/00 .......................... 2,494,400
A3 5,300 Provident Bank Cincinnati Ohio,
6.125%, 12/15/00 ........................ 5,245,516
Salomon Smith Barney Holdings Inc.,
A 8,225 Zero Coupon, 5/15/00 - 6/01/00** ........ 8,026,918
A 250 6.625%, 6/01/00** ....................... 250,155
A 10,300 6.625%, 11/30/00 ........................ 10,272,396
Transamerica Finance Corp.,
A 10,338 Zero Coupon, 6/01/00** .................. 10,063,660
-----------
93,100,331
-----------
INDUSTRIALS--3.1%
AA 7,500 Erac USA Finance Co.,
7.00%, 6/15/00** ........................ 7,510,441
A 13,019 Ford Motor Credit Co.,
Zero Coupon, 3/15/00 - 2/23/01** ........ 12,064,697
A- 2,107 Kern River Funding Corp.,
6.42%, 3/31/01** ........................ 2,095,665
AA- 7,000 TCI Communications, Inc.,
7.375%, 2/15/00 ......................... 7,009,450
-----------
28,680,253
-----------
UTILITIES--1.1%
A3 5,000 Columbia Energy Group, Inc.,
6.39%, 11/28/00 ......................... 4,974,100
BBB+ 5,000 Potomac Capital Investment Corp.,
6.73%, 8/09/00** ........................ 5,000,000
-----------
9,974,100
-----------
YANKEE--0.5%
A 5,000 Corporacion Andina de Fomento,
7.375%, 7/21/00 ......................... 5,014,250
-----------
136,768,934
-----------
COLLATERALIZED MORTGAGE OBLIGATION
RESIDUALS**/***--0.1%
AAA 5 American Housing Trust V,
Senior-Mortgage Pass-Through
Certificates, Series 2A, Class R,
4/25/21, (REMIC) ........................ 451,500
NR 1 M.D.C. Asset Investors, Trust VI,
11/01/17, (REMIC) ....................... 164,234
NR 57 PaineWebber Trust,
Series N, Class 7,
1/01/19, (REMIC) ........................ 143,289
-----------
759,023
-----------
See Notes to Financial Statements.

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Liabilities in excess of
other assets--(38.5)% ................... (359,210,513)
--------------
NET ASSETS--100% .......................... $ 933,822,172
==============

- -----------------
* 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 0.06% of portfolio assets.
@ Entire or partial principal amount pledged as collateral for reverse
repurchase agreements or financial futures contracts.

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KEY TO ABBREVIATIONS
CMO -- Collateralized Mortgage Obligation.
F.H.A. --Federal Housing Administration.
G.O. -- General Obligation.
LIBOR-- London InterBank Offer Rate.
REMIC-- Real Estate Mortgage Investment Conduit.
TIPS -- Treasury Inflation Protection Securities.
- --------------------------------------------------------------------------------

See Notes to Financial Statements.

9
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THE BLACKROCK TARGET TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------

ASSETS
Investments, at value (cost $1,294,000,645)
(Note 1) ................................................. $1,293,032,685
Cash ....................................................... 185,451
Receivable for investments sold ............................ 14,761,899
Interest receivable ........................................ 3,586,592
--------------
1,311,566,627
--------------
LIABILITIES
Reverse repurchase agreements (Note 4) ..................... 370,901,975
Dividends payable .......................................... 3,699,100
Interest payable ........................................... 967,454
Investment advisory fee payable (Note 2) ................... 348,402
Administration fee payable (Note 2) ........................ 69,945
Other accrued expenses ..................................... 1,757,579
--------------
377,744,455
--------------
NET ASSETS ................................................. $ 933,822,172
==============
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 ........................ 43,718,113
Accumulated net realized gain .............................. 118,907
Net unrealized depreciation ................................ (967,960)
--------------
Net assets, December 31, 1999 .............................. $ 933,822,172
==============

Net asset value per share:
($933,822,172o95,460,639 shares of
common stock issued and outstanding) ..................... $9.78
=====

- --------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
- --------------------------------------------------------------------------------

NET INVESTMENT INCOME
Income
Interest (including net discount accretion
of $51,515,688 and net of interest expense
of $20,019,710) ....................................... $64,775,367
------------
Operating expenses
Investment advisory ...................................... 4,288,053
Administration ........................................... 862,086
Custodian ................................................ 225,000
Transfer agent ........................................... 183,000
Reports to shareholders .................................. 132,000
Independent accountants .................................. 100,000
Directors ................................................ 84,000
Registration ............................................. 75,000
Legal .................................................... 50,000
Miscellaneous ............................................ 231,827
------------
Total operating expenses .............................. 6,230,966
------------
Net investment income before excise tax .................... 58,544,401
Excise tax ................................................. 1,636,395
------------
Net investment income ...................................... 56,908,006
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on:
Investments .............................................. (6,767,014)
Interest rate swaps ...................................... (507,078)
Futures .................................................. (1,931,078)
Options written .......................................... 1,421,000
Short sales .............................................. 3,212,623
------------
(4,571,547)
------------
Net change in unrealized appreciation (depreciation) on:
Investments .............................................. (40,690,498)
Options written .......................................... 3,730,328
Interest rate swaps ...................................... (1,018,229)
Short sales .............................................. (240,074)
------------
(38,218,473)
------------
Net loss on investments .................................... (42,790,020)
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .............................. $ 14,117,986
============

See Notes to Financial Statements.

10
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1999
- --------------------------------------------------------------------------------

RECONCILIATION OF NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS TO NET CASH
FLOWS USED FOR OPERATING ACTIVITIES
Net increase in net assets resulting from
operations ................................................. $ 14,117,986
-------------
Decrease in investments ...................................... 57,401,835
Net realized loss ............................................ 4,571,547
Decrease in unrealized appreciation .......................... 38,218,473
Decrease in interest receivable .............................. 673,773
Decrease in appreciation of interest rate swap ............... 1,018,229
Decrease in payable for investments purchased ................ (100,781,597)
Decrease in payable for investments
sold short ................................................. (37,724,243)
Decrease in deposit with brokers
for investments sold short ................................. 38,344,414
Decrease in call options written ............................. (5,151,328)
Increase in receivable for investments sold .................. (14,761,899)
Decrease in interest payable ................................. (3,203,911)
Increase in accrued expenses and other liabilities ........... 822,333
-------------
Total adjustments .......................................... (20,572,374)
-------------
Net cash flows used for operating activities ................. $ (6,454,388)
=============
INCREASE (DECREASE) IN CASH
Net cash flows used for operating activities ................. $ (6,454,388)
-------------
Cash flows provided by financing activities:
Increase in reverse repurchase agreements .................. 54,684,700
Cash dividends paid ........................................ (48,050,053)
-------------
Net cash flows provided by financing activities .............. 6,634,647
-------------
Net increase in cash ....................................... 180,259
Cash at beginning of year .................................. 5,192
-------------
Cash at end of year .......................................... $ 185,451
=============

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

YEAR ENDED DECEMBER 31,
---------------------------------
1999 1998
------------ ------------
INCREASE (DECREASE) IN
NET ASSETS

Operations:

Net investment income ................... $56,908,006 $ 50,122,695

Net realized gain (loss) ................ (4,571,547) 361,119

Net change in unrealized
appreciation (depreciation) ........... (38,218,473) 24,158,202
------------ ------------

Net increase in net assets
resulting from operations ............. 14,117,986 74,642,016

DIVIDENDS FROM NET

INVESTMENT INCOME ......................... (47,473,312) (51,308,780)
------------ ------------
Total increase (decrease) ............... (33,355,326) 23,333,236

NET ASSETS

Beginning of year ........................ 967,177,498 943,844,262
------------ ------------
End of year (including
undistributed net investment
income of $43,718,113 and
$32,647,024, respectively) .............. $933,822,172 $967,177,498
============ ============

See Notes to Financial Statements.

11
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995
-------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ............ $ 10.13 $ 9.89 $ 9.82 $ 10.02 $ 9.01
-------- ------- ------- ------- --------
Net investment income (net of
interest expense of $0.21, $0.27,
$0.27, $0.28 and $0.36, respectively) ..... 0.62 0.52 0.64 0.68 0.72
Net realized and unrealized gain (loss) ..... (.47) 0.26 -- (0.31) 0.99
-------- ------- ------- ------- --------
Net increase from investment operations ....... 0.15 0.78 0.64 0.37 1.71
-------- ------- ------- ------- --------
Dividends from net investment income .......... (0.50) (0.54) (0.57) (0.57) (0.70)
-------- ------- ------- ------- --------
Net asset value, end of year* ................. $ 9.78 $ 10.13 $ 9.89 $ 9.82 $ 10.02
======== ======= ======= ======= ========
Market value, end of year* .................... $ 9.625 $ 9.75 $ 9.31 $ 8.88 $ 8.75
======== ======= ======= ======= ========
TOTAL INVESTMENT RETURN ....................... 3.93% 10.79% 11.64% 7.94% 16.34%

RATIOS TO AVERAGE NET ASSETS:

Operating expenses ............................ 0.65% 0.66% 0.68% 0.73% 0.75%
Operating expenses and Interest Expense ....... 2.76% 3.34% 3.43% 3.57% 4.53%
Operating expenses, Interest Expense
and Excise Taxes ............................ 2.93% 3.43% 3.47% 3.64% 4.54%
Net investment income ......................... 5.97% 5.23% 6.49% 6.89% 7.57%

SUPPLEMENTAL DATA:

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

- -------------
* Net asset value and market value are published in BARRON'S each Saturday
andTHE WALL STREET JOURNAL each 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 year 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.
++ Per $1,000 of reverse repurchase agreement outstanding.

The information above represents the audited 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 years 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.

12
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION & The BlackRock Target ACCOUNTING Term Trust Inc.
POLICIES (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. 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.

Short-term securities having a remaining maturity of 60 days or less are
valued at amortized cost which approximates market value.

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 portfo-

<PAGE>

lio 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.

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

14
<PAGE>

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 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 year ended
December 31, 1999.

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.

Transactions 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.

Transactions 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.

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.

15
<PAGE>

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

ESTIMATES: The preparation of financial statements in conformity with generally
accepted accounting principles 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.

RECLASSIFICATION OF CAPITAL ACCOUNTS: The Trust accounts for and reports
distributions to shareholders in accordance with the American Institute of
Certified Public Accountants' Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distributions by Investment Companies. The effect caused by
applying this statement was to decrease paid-in capital and increase
undistributed net investment income $1,636,395 due to certain expenses not being
deductible for tax purposes. Net investment income, net realized gains and net
assets were not affected by this change.

NOTE 2. AGREEMENTS The Trust has an Investment Advisory Agreement
with BlackRock Financial Management, Inc. (the
"Advisor"), a wholly-owned subsidiary of BlackRock Advisors, Inc., which is a
wholly-owned subsidiary of BlackRock, Inc., which in turn is an indirect
majority-owned subsidiary of PNCBank Corp. The Trust has an Administration
Agreement with Prudential Investments Fund Management LLC ("PIFM"), an indirect,
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 Purchases and sales of investment securities,
SECURITIES other than short-term investments and dollar
rolls, for the year ended December 31, 1999
aggregated $200,929,757 and $153,909,847, 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 December 31, 1999, the Trust
held 5.9% of its portfolio assets in restricted securities.

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 December 31,
1999 was substantially the same as the basis for financial reporting and
accordingly, net unrealized depreciation for federal income tax purposes was
$967,960 (gross unrealized appreciation--$18,173,381; gross unrealized
depreciation--$19,141,341.)

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 gains
distribution is expected to be paid to shareholders until net gains have been
realized in excess of such amount.

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 year ended December 31, 1999 was approximately $394,414,893 at a
weighted average interest rate of approximately 4.83%. The maximum amount of
reverse repurchase agreements outstanding at any month-end during the period
ended December 31, 1999 was $419,620,963 as of January 31, 1999 which was 29% of
total assets.

16
<PAGE>

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 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 had no outstanding dollar rolls during the year ended December
31, 1999.

NOTE 5. CAPITAL There are 200 million shares of $.01 par value
common stock authorized. Of the 95,460,639
shares outstanding at December 31, 1999, the Advisor owned 10,639 shares.

17
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK TARGET TERM TRUST INC.
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------

The Shareholders and Board of Directors of
The BlackRock Target Term Trust Inc.:

We have audited the accompanying statement of assets and liabilities of The
BlackRock Target Term Trust Inc., including the portfolio of investments, as of
December 31, 1999, and the related statements of operations and of cash flows
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1999, by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
BlackRock Target Term Trust Inc. as of December 31, 1999, and the results of its
operations, its cash flows, the changes in its net assets and its financial
highlights for the respective stated periods in conformity with generally
accepted accounting principles.

/s/ DELOITTE & TOUCHE, LLP
- --------------------------

Deloitte & Touche, LLP

New York, New York
February 11, 2000

18
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THE BLACKROCK TARGET TERM TRUST INC.
TAX INFORMATION
- --------------------------------------------------------------------------------

We wish to advise you as to the federal tax status of dividends and
distributions paid by the Trust from net investment income during the taxable
year ended December 31, 1999.

During the fiscal year ended December 31, 1999, the Trust paid aggregate
dividends of $0.4973 per share to investors taxable as 1999 income to
shareholders of record from January 1 toDecember 31, 1999. For Federal Income
tax purposes the dividends you received are reportable in your 1999 federal
income tax returns as ordinary income. Further, we wish to advise you that your
income dividends do not qualify for the dividends received deduction.

We are required by Massachusetts, Missouri, and Oregon to inform you that
dividends which have been derived from interest on federal obligations are not
taxable to shareholders. Please be advised that 90.59% of the dividends paid
from ordinary income in the fiscal year ended December 31, 1999 qualify for each
of these states' tax exclusion.

For the purpose of preparing your 1999 annual federal income tax return,
however, you should report the amounts as reflected on the appropriate Form 1099
DIV which was mailed to you in January 2000.

- --------------------------------------------------------------------------------
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.

- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

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.

We have transitioned into the Year 2000, and it is business as usual at
BlackRock.

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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. is an SEC-registered investment advisor. As of December
31, 1999, BlackRock and its affiliates (together, "BlackRock") managed $165
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 $27 billion family of open-end funds. BlackRock manages
over 580 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 he 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.

20
<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.

SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO TERM TRUSTS
THE TRUST IS INTENDED TO BE A LONG-TERM INVESTMENT AND IS NOT A SHORT-TERM
TRADING VEHICLE.

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.

21
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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.

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

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.

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.

23
<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 AUDITORS
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

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

[Logo] Printed on Recycled Paper 092476-10-0

THE BLACKROCK
TARGET
TERM TRUST INC.
========================
ANNUAL REPORT
DECEMBER 31, 1999