BLACKROCK ADVANTAGE TERM TRUST INC, N-30D, 1997-08-28

BLACKROCK ADVANTAGE TERM TRUST INC
N-30D, 1997-08-28

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THE BLACKROCK ADVANTAGE TERM TRUST INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------

July 31, 1997

Dear Trust Shareholder:

After experiencing higher interest rates in the face of a resilient stock
market and stronger economic growth for the first few months of 1997, bond
investors were comforted by more moderate economic data released during the
second quarter which allowed the bond market to recapture some of its losses.

Our outlook for the bond market is cautiously optimistic. Over the short
term, we believe that the recent rally may continue, since inflation news has
been positive and U.S. securities appear cheap relative to their global
counterparts. Additionally, Fed Chairman Greenspan appears to be comfortable
allowing the economy to expand in the absence of rising inflationary pressures.
Thus, we do not foresee another tightening in the immediate future in the
absence of a visible inflation shock. However, recent wage increases, the
buoyant stock market and record levels of consumer confidence could lead to
stronger consumer spending and overall economic growth in the third quarter.
Therefore, an uninterrupted decline in yields is by no means a certainty.

This report provides the Trust's portfolio managers an opportunity to
provide you with detailed market commentary and to review the major investment
themes of the portfolio over the past six months. We hope that you find this
report informative and look forward to serving your financial needs in the
future.

Sincerely,

/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
- ----------------------------- ------------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President

1
<PAGE>

July 31, 1997
Dear Shareholder:

We are pleased to present the semi-annual report for The BlackRock
Advantage Term Trust Inc. ("the Trust") for the six months ended June 30, 1997.
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 "BAT". The
Trust's investment objective is to return $10 per share (its initial offering
price) to shareholders on or shortly before December 31, 2005 while providing
monthly income. Although there can be no guarantee, BlackRock is confident that
the Trust can achieve its investment objectives. The Trust seeks these
objectives 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 the
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:

<TABLE>
<CAPTION>
----------------------------------------------------------
6/30/97 12/31/96 CHANGE HIGH LOW
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
STOCK PRICE $8.875 $8.625 2.90% $8.9375 $8.375
- -----------------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $10.19 $10.10 0.89% $10.24 $9.87
- -----------------------------------------------------------------------------------------
10-YEAR TREASURY NOTE 6.51% 6.42% +9 bp 6.97% 6.26%
- -----------------------------------------------------------------------------------------
</TABLE>

THE FIXED INCOME MARKETS

The strong economic growth witnessed during the fourth quarter of 1996
spilled over into the first quarter of 1997. Although inflationary measures such
as commodity, producer and consumer prices remained relatively stable, labor
markets continued to strengthen. In an effort to subdue this growth, the Federal
Reserve raised the Federal funds rate by 25 basis points at their March 25
policy meeting as a pre-emptive strike against inflation.

After expanding at a blistering pace of 5.9% during the first quarter, the
U.S. economy's growth rate slowed in the second quarter of 1997. Signs of an
economic slowdown were prevalent in a broad range of industrial and consumer
indicators, including lower factory orders, decreased consumer spending, and
higher inventories. In addition, inflationary forces remained benign according
to year-over-year comparisons for the consumer and producer indices. These
indicators allowed the Federal Reserve to maintain interest rate levels at their
May 20 and July 2 policy meetings and wait for more definite signs of inflation
before increasing interest rates.

The market for mortgage-backed securities (MBS) significantly outperformed
the broader investment grade bond market for the six months ended June 30, 1997.
Strong investor demand for higher yielding "spread product", which offers a
yield premium over comparable maturity Treasury securities, boosted prices in
the mortgage sector. For the period, the MBS market as measured by the LEHMAN
BROTHERS MORTGAGE INDEX posted a 3.91% total return versus the 3.11% return of
the LEHMAN BROTHERS AGGREGATE INDEX. In the corporate bond market, strong
fundamentals created by steady economic growth, low inflation, and rising
corporate profits drove the sector to outperform comparable maturity Treasuries.
Corporate yields rose during March and April as interest rates drifted higher
and the stock market faltered. However, a benign inflationary outlook and strong
corporate earnings led to a reversal of performance in May and June.

2
<PAGE>

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, 1996 asset
composition.

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THE BLACKROCK ADVANTAGE TERM TRUST INC.
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COMPOSITION JUNE 30, 1997 DECEMBER 31, 1996
- --------------------------------------------------------------------------------
Taxable Zero-Coupon Bonds 29% 33%
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U. S. Government Securities 18% 10%
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Corporate Bonds 12% 16%
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Mortgage Pass-Throughs 10% 10%
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Agency Multiple Class Mortgage Pass-Throughs 9% 10%
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Strip Mortgage-Backed Securities 5% 5%
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CMO Residuals 5% 4%
- --------------------------------------------------------------------------------
Commercial Mortgage-Backed Securities 5% 4%
- --------------------------------------------------------------------------------
Municipal Bonds 3% 4%
- --------------------------------------------------------------------------------
Non-Agency Multiple Class Mortgage Pass-Throughs 3% 3%
- --------------------------------------------------------------------------------
Municipal Zero Coupon Bond 1% 1%
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- --------------------------------------------------------------------------------
RATING % OF CORPORATES
- --------------------------------------------------------------------------------
CREDIT RATING JUNE 30, 1997 DECEMBER 31, 1996
- --------------------------------------------------------------------------------
AA or equivalent 6% 00%
- --------------------------------------------------------------------------------
A or equivalent 42% 46%
- --------------------------------------------------------------------------------
BBB or equivalent 52% 54%
- --------------------------------------------------------------------------------

In seeking the primary investment objective of returning the initial offer
price upon maturity, the Trust continued to emphasize securities offering both
attractive yield spreads over Treasury securities and a maturity date matching
the Trust's termination date of December 31, 2005. To that end, the Trust
remained primarily invested in zero coupon bonds, investment grade corporate
bonds, U.S. Treasury securities and well-structured mortgage-backed securities.
Over the period, the Trust opportunistically sold selected corporate bonds whose
yield spreads versus comparable maturity Treasury securities had narrowed
significantly due to price appreciation. Proceeds from the sale of these
securities were invested in Treasury securities maturing on or shortly before
the Trust's termination date.

3
<PAGE>

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 Advantage 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 Principal and Portfolio Manager
BlackRock Financial Management, Inc. BlackRock Financial Management, Inc.

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

4
<PAGE>
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THE BLACKROCK ADVANTAGE TERM TRUST INC.
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
RATING* (000) DESCRIPTION (NOTE 1)
- --------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--146.4%
MORTGAGE PASS-THROUGHS--14.3%
Federal Home Loan Mortgage
Corporation,
$ 1,860+ 6.50%, 8/01/25 - 11/01/25 .............. $ 1,781,653
5,974+ 9.50%, 1/01/05, 15 Year ................ 6,211,695
975 Federal Housing Administration,
Alzheimer Care Center,
8.125%, 12/25/37 ....................... 1,011,615
18 Federal National Mortgage
Association,
9.50%, 7/01/20 ......................... 19,400
Government National Mortgage
Association,
3,750 8.00%, 12/15/99 ........................ 3,836,700
924 9.50%, 1/15/17 - 5/15/20 ............... 997,390
-----------
13,858,453
-----------

MULTIPLE CLASS MORTGAGE
PASS-THROUGHS--16.0%
BBB 1,000 DLJ Mortgage Acceptance
Corporation, Series 1997 CF,
Class B1, 7.91%, 4/15/07 ............... 1,038,125
Federal Home Loan Mortgage
Corporation, Multiclass Mortgage
Participation Certificates,
3,200 Series 1295, Class 1295-JB,
3/15/07 .............................. 2,850,688
908 Series 1541, Class 1541-TB,
7/15/23 (ARM) ........................ 566,096
1,220 Series 1607, Class 1607-S,
10/15/13 (ARM) ....................... 964,289
460 Series 1655, Class 1655-SB,
12/15/08 (ARM) ....................... 401,329
773 Series 1661, Class 1661-SJ,
3/15/08 (ARM) ........................ 557,691
433 Series 1666, Class 1666-SB,
1/15/24 (ARM) ........................ 380,661
Federal National Mortgage
Association, REMIC Pass-Through
Certificates,
2,503 Trust 1992-129, Class 129-J,
7/25/20 (ARM) ........................ 2,112,432
259 Trust 1993-59, Class 59-SC,
11/25/07 (ARM) ....................... 249,842
944 Trust 1993-183, Class 183-SE,
10/25/23 (ARM) ....................... 706,609
1,444 Trust 1993-193, Class193-E,
9/25/23 .............................. 520,432
238 Trust 1993-193, Class 193-PC,
9/25/23 .............................. 220,791
1,000 Trust 1994-13, Class 13-SM,
2/25/09 (ARM) ........................ 768,750
1,590 Trust 1994-37, Class 37-SC,
3/25/24 (ARM) ........................ 1,296,527
2,941 Trust 1997-30, Class 30-I,
1/25/23 (I) .......................... 966,963
AAA 2,000 NYC Mortgage Loan Trust,
Mortgage Pass Through,
6.75% 6/25/11 .......................... 1,924,375
-----------
15,525,600
-----------
COMMERCIAL MORTGAGE-BACKED
SECURITIES--7.7%
A 1,000 CS First Boston Mortgage
Securities Corporation,
Series 1995-AEW 1, Class C,
7.458%, 11/25/27 ..................... 1,007,031
AAA 1,000 Goldman Sachs Mortgage
Securities Corporation,
Series 1996- PL, Class A2,
7.41%, 2/15/27 ....................... 1,018,281
AAA 917 LTC Commercial Mortgage Corp.,
Series 1996-1, Class 1-A,
7.06%, 4/15/28 ....................... 918,155
Merrill Lynch Mortgage Investors
Incorporated, Multiclass Mortgage
Pass-Through Certificates,
BBB 1,000 Series 1995-C1, Class C,
7.98%, 5/25/15........................ 1,025,090
BBB 500 Series 1996-C1, Class D,
7.42%, 4/25/28. ...................... 500,255
BBB 1,000 Morgan Stanley Capital 1
Incorporated, Commercial
Mortgage Pass-Through,
Series 1995-GA1, Class D,
7.98%, 8/15/27 ....................... 1,042,177
AAA 500 Salomon Brothers, Series 1997-TZH,
Class A1, 3/25/25 .................... 506,250
AAA 1,150 Sears Mortgage Securities
Corporation, Series 1993-7,
Class A15, 9.92%,
4/25/08, (ARM) ....................... 1,025,668
AAA 500 Structured Asset Securities
Corporation, Series 1996- CFL,
Class B, 6.303%, 2/25/28 ............... 489,397
-----------
7,532,304
-----------

See Notes to Financial Statements.

5
<PAGE>
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
RATING* (000) DESCRIPTION (NOTE 1)
- --------------------------------------------------------------------------------
CORPORATE BONDS--17.7%
FINANCE & BANKING--9.0%
A3 $ 1,000@ American Savings Bank,
6.625%, 2/15/06 ...................... $ 953,685
A2 1,525 Equitable Life of America,
Zero Coupon, 12/01/98 - 12/01/05 ..... 918,857
Ba1 1,000 Macsaver Financial Services Inc.,
7.875%, 8/01/03 ...................... 1,006,060
BBB 1,900 PaineWebber Group Inc.,
7.875%, 2/15/03 ...................... 1,969,749
AA 1,000 Salomon Inc.,
6.75%, 1/15/06 ....................... 956,090
A2 1,425 Smith Barney Holdings Inc.,
7.98%, 3/01/00 ....................... 1,472,176
A 1,485 Transamerica Finance Corporation,
6.75%, 6/01/00 ....................... 1,488,995
-----------
8,765,612
-----------
INDUSTRIALS--3.5%
Baa3 1,000 Burlington Industries Inc.,
7.25%, 9/15/05 ....................... 969,350
BBB 1,000@@ Tele-Communications, Inc.,
8.25%, 1/15/03 ....................... 1,034,830
A3 2,142 Union Pacific Corp.,
Zero Coupon,
11/01/98 - 5/01/05 ................... 1,362,927
-----------
3,367,107
-----------
UTILITIES--2.1%
BBB 1,000 360 Communications Co.,
7.50%, 3/01/06 ....................... 998,340
Baa3 1,000 NRG Energy Inc.,
7.625%, 2/01/06 ...................... 1,002,140
-----------
2,000,480
-----------
OTHER--3.1%
Baa3 1,000 Empresa Electric Guacolda SA,
7.95%, 4/30/03 ....................... 1,019,420
Baa1 1,000 Empresa Electric Pehuhuenche,
7.30%, 5/01/03 ....................... 1,004,603
A3 1,000 Israel Electric Corp. Ltd.,
7.25%, 12/15/06 ...................... 991,970
-----------
3,015,993
-----------
ASSET-BACKED SECURITIES--1.0%
AAA 992 Structured Mortgage Asset
Residential Trust,
1997-3, 8.724%, 4/15/06 .............. 997,277
-----------
STRIPPED MORTGAGE-BACKED
SECURITIES--6.3%
Collateralized Mortgage Obligation,
AAA 1,218 Trust 26, Class A, 4/23/17, (P/O) ...... 993,465
AAA 97 Trust 29, Class A, 5/23/17, (P/O) ...... 72,641
Federal Home Loan Mortgage
Corporation, Multiclass Mortgage
Participation Certificates,
6,441 Series G-25, Class S,
8/25/06 (I/O) ........................ 259,578
3,082 Series 1700, Class 1700-B,
7/15/23 (P/O) ........................ 2,872,825
1,500 Series 1946, Class 1946-N,
10/15/08 (P/O) ....................... 943,125
1,500 Series 1946, Class 1946-SN,
8.186%, 10/15/08 (I/O) ............... 402,891
Federal National Mortgage
Association,
1,406 Trust 1993-225, Class 225-ME,
11/25/23 (P/O) ....................... 376,105
287 Trust 1993-243, Class 243-C,
11/25/23 (P/O) ....................... 202,057
-----------
6,122,687
-----------
U.S GOVERNMENT SECURITIES--
26.7%
1,739 Small Business Administration,
Participation Certificates,
Series 1995-10, Class 10-C,
7.35%, 8/01/05 ....................... 1,753,945
U.S. Treasury Notes,
300 5.875%, 10/31/98 ....................... 299,673
2,805++ 6.50%, 10/15/06 ........................ 2,793,163
10,500+ 6.625%, 3/31/02 ........................ 10,595,130
18,000+ U.S. Treasury Strips,
Zero Coupon, 11/15/05 .................. 10,438,560
-----------
25,880,471
-----------
TAXABLE ZERO COUPON BONDS--
43.0%
10,000 Vanguard Prime Money Market
Strip, 12/31/04 ........................ 5,987,000
12,407 Aid to Israel, 2/15/05 - 8/15/05 ....... 7,310,402
Government Trust Certificates,
5,220 Class 2F, 5/15/05 ...................... 3,122,604
13,760 Class T-1, 5/15/05 ..................... 8,174,816
22,926++ Resolution Funding Corporation,
7/15/05 ................................ 13,450,226
6,216 Tennessee Valley Authority,
11/01/05 ............................... 3,570,470
-----------
41,615,518
-----------
MUNICIPAL BONDS--4.4%
AAA 1,494 Kern County California, Pension
Obligation, Zero Coupon,
8/15/98 - 8/15/05 ...................... 926,424
Long Beach California,
AAA 1,476 Pension Obligation, Taxable
Refunding, Zero Coupon,
9/01/98 - 9/01/05 ...................... 930,693

See Notes to Financial Statements.

6
<PAGE>
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PRINCIPAL
AMOUNT VALUE
RATING* (000) DESCRIPTION (NOTE 1)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--(CONT'D)
AAA $ 500 Long Beach California,
Pension Obligation, Taxable
Refunding, 7.09%, 9/01/09 .............. $ 492,910
Los Angeles County California,
Baa1 34 Pension, Series 4,
Zero Coupon 6/30/99 .................... 29,692
Baa1 1,474 Pension, Series D,
Zero Coupon,
12/31/98 - 6/30/05 ..................... 862,975
AAA 1,000 Pension, Series A, Asset,
Guaranty, 8.62%, 6/30/06 ............... 1,105,500
-----------
4,348,194
-----------
MUNICIPAL ZERO COUPON BONDS--1.3%
AAA 1,000 Alameda County California
Pension Obligation, Capital
Appreciation Taxable, Series B,
12/01/05 ............................. 547,650
AAA 1,000 Alaska Energy Power Authority,
Revenue Bond,
First Series, Zero Coupon,
7/01/05 .............................. 668,890
-----------
1,216,540
-----------
COLLATERALIZED MORTGAGE
OBLIGATION RESIDUALS***--8.0%
Federal Home Loan Mortgage
Corporation, Multiclass
Mortgage Participation
Certificates,
10 Series 114, Class 114-RS,
1/15/21 .............................. 2,162,623
10 Series 1035, Class 1035-R,
1/15/21 .............................. 751,500
Federal National Mortgage
Association, REMIC Pass-
Through Certificates,
20 Trust 1990-26,
Class 26-R, 3/25/20 .................... 499,066
4,462++ Trust 1994-72
Class L, 4/25/24 (REMIC) ............... 4,291,540
-----------
7,704,729
-----------
Total Long-Term Investments
(cost $136,204,420)..................... 141,950,965

SHORT-TERM INVESTMENTS--4.0%
CORPORATE BONDS--0.2%
70 Equitable Life of America,
Zero Coupon, 12/01/97-6/01/98........... 66,763
106 Union Pacific Corp.,
Zero Coupon, 11/01/97-5/01/98 .......... 102,924
-----------
169,687
-----------
MUNICIPAL BONDS--0.2%
67 Kern County California, Pension,
Zero Coupon, 8/15/97-2/15/98 ........... 65,119
68 Long Beach California,Pension
Obligation,Zero Coupon,
9/01/97-3/01/98 ........................ 66,209
34 Los Angeles County California,
Pension, Series 4, Zero Coupon,
12/31/97-6/30/98 ....................... 64,636
-----------
195,964
-----------
REPURCHASE AGREEMENT--3.6%
3,455 State Street Bank and Trust Co.
Repo, 5.60% dated 6/30/97
due 7/1/97 in the amount of
$3,455,537 (cost $3,455,000
collateralized by $3,460,000 U.S.
Treasury Note,
6.25% due 3/31/99 value
including accrued
interest $3,526,742) ................... 3,455,000
-----------
Total Short-Term Investments
(cost $3,821,546) ...................... 3,820,651
-----------
Total Investments--150.4%
(cost $140,025,966) .................... 145,771,616
Liabilities in excess of other
assets--(50.4%) ........................ (48,882,713)
-----------
NET ASSETS--100% ......................... $96,888,903
===========
- ----------
* Using the higher of Standard & Poor's or Moody's rating.
** Private placements restricted as to resale.
*** Illiquid securities representing 5.3% of portfolio assets.
+ (Partial) principal amount pledged as collateral for reverse repurchase
agreements.
++ Entire principal amount pledged as collateral for reverse repurchase
agreements.
@ (Partial) principal amount pledged as collateral for futures transactions.
@@ Entire principal amount pledged as collateral for futures transactions.

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KEY TO ABBREVIATIONS
- --------------------------------------------------------------------------------
ARM -- Adjustable Rate Mortgage.
CMO -- Collateralized Mortgage Obligation.
I -- Denotes a CMO with interest only characteristics.
I/O -- Interest Only.
P -- Denotes a CMO with principal only characteristics.
P/O -- Principal Only.
REMIC -- Real Estate Mortgage Investment Conduit.
- --------------------------------------------------------------------------------

See Notes to Financial Statements.

7
<PAGE>

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THE BLACKROCK ADVANTAGE TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------

ASSETS
Investments, at value
(cost $140,025,966) (Note 1) .......................... $ 145,771,616
Cash .................................................... 49,247
Interest receivable ..................................... 883,701
Due from broker-variation margin ........................ 170,957
Receivable for investments sold ......................... 2,326
-------------
146,877,847
-------------

LIABILITIES
Reverse repurchase agreements (Note 4) .................. 45,551,921
Payable for investments purchased ....................... 4,207,036
Interest payable ........................................ 72,936
Dividends payable ....................................... 49,085
Advisory fee payable (Note 2) ........................... 39,768
Administration fee payable (Note 2) ..................... 7,954
Other accrued expenses .................................. 60,244
-------------
49,988,944
-------------
NET ASSETS .............................................. $ 96,888,903
=============

Net assets were comprised of:
Common stock, at par (Note 5) ......................... $ 95,107
Paid-in capital in excess of par ...................... 87,687,396
-------------
87,782,503
Undistributed net investment income ................... 4,174,159
Accumulated net realized loss ......................... (548,392)
Net unrealized appreciation ........................... 5,480,633
-------------
Net assets, June 30, 1997 ............................. $ 96,888,903
=============
Net asset value per share:
($96,888,903 divided by 9,510,667 shares of
common stock issued and outstanding) .................. $10.19
======

- --------------------------------------------------------------------------------
THE BLACKROCK ADVANTAGE TERM TRUST INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------

NET INVESTMENT INCOME
Income
Interest earned (including net discount
accretion of $2,156,229 and net of interest
expense of $1,015,721) .................................... $ 4,766,200
-----------
Operating expenses
Investment advisory ......................................... 237,326
Administration .............................................. 47,465
Reports to shareholders ..................................... 59,000
Custodian ................................................... 15,000
Transfer agent .............................................. 13,000
Audit ....................................................... 8,000
Directors ................................................... 7,000
Legal ....................................................... 1,000
Miscellaneous ............................................... 22,762
-----------
Total operating expenses .................................. 410,553
-----------
Net investment income ......................................... 4,355,647
-----------

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 3)
Net realized gain (loss) on:
Investments ................................................. 1,442,802
Futures ..................................................... (193,345)
Written Options ............................................. 57,500
-----------
1,306,957
-----------
Net change in unrealized appreciation (depreciation) on:
Investments ................................................. (1,778,592)
Futures ..................................................... (546,625)
-----------
(2,325,217)
-----------
Net loss on investments ....................................... (1,018,260)
-----------

NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ..................................... $ 3,337,387
===========

See Notes to Financial Statements.

8
<PAGE>

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THE BLACKROCK ADVANTAGE TERM TRUST INC.
STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------

INCREASE (DECREASE) IN CASH
Cash flows used for operating activities:
Interest received ............................................ $ 5,518,273
Operating expenses and excise taxes paid ..................... (471,509)
Interest expense paid ........................................ (1,101,097)
Purchase of short-term
portfolio investments, net ................................. (1,280,233)
Purchase of long-term portfolio investments .................. (47,974,204)
Proceeds from disposition of long-term
portfolio investments ...................................... 30,298,765
Variation margin on futures .................................. (810,096)
------------
Net cash flows used for operating
activities ................................................. (15,820,101)
------------
Cash flows provided by financing activities:
Increase in reverse repurchase agreements ...................... 18,619,296
Cash dividends paid ........................................ (2,922,856)
------------
Net cash flows provided by financing activities15,696,440
------------
Net decrease in cash ......................................... (123,661)
Cash at beginning of period .................................. 172,908
------------
Cash at end of period ........................................ $ 49,247
============

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 .............................................. $ 3,337,387
------------
Increase in investments ........................................ (22,945,337)
Net realized gain .............................................. (1,306,957)
Decrease in unrealized appreciation ............................ 2,325,217
Increase in receivable for investments sold .................... (1,892)
Increase in interest receivable ................................ (262,648)
Increase in due from broker-variation margin ................... (70,126)
Decrease in interest payable ................................... (85,376)
Increase in payable for investments purchased .................. 3,323,523
Decrease in accrued expenses and other
liabilities .................................................. (133,892)
------------
Total adjustments ............................................ (19,157,488)
------------
Net cash flows used for operating activities ................... $(15,820,101)
============

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

SIX MONTHS
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1997 1996
---- ----
INCREASE (DECREASE)
IN NET ASSETS

Operations:

Net investment income .............. $ 4,355,647 $ 5,415,374

Net realized gain (loss) on
investments, short sales
and futures ...................... 1,306,957 (3,553,823)

Net change in unrealized
appreciation (depreciation)
on investments, short
sales and futures ................ (2,325,217) 387,245
------------ ------------

Net increase in net assets
resulting from operations ........ 3,337,387 2,248,796

Dividends from net investment
income ........................... (2,476,597) (5,943,922)
------------ ------------

Total increase (decrease) ........ 860,790 (3,695,126)

NET ASSETS

Beginning of period .................. 96,028,113 99,723,239
------------ ------------

End of period ........................ $ 96,888,903 $ 96,028,113
============ ============

See Notes to Financial Statements.

9
<PAGE>

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

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------
1997 1996 1995 1994 1993 1992
------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period .................. $10.10 $10.49 $ 9.00 $10.73 $10.43 $10.96
------ ------ ------ ------ ------ ------
Net investment income (net of $.11, $.22,
$.47, $.25, $.16 and $.18, respectively, of
interest expense) ................................ 0.46 .57 .74 .53 .56 1.38
Net realized and unrealized gain (loss) on
securities ....................................... (0.11) (.33) 1.42 (1.53) .57 (1.01)
------ ------ ------ ------ ------ ------
Net increase (decrease) from investment
operations ......................................... 0.35 .24 2.16 (1.00) 1.13 .37
------ ------ ------ ------ ------ ------
Dividends from net investment income .................. (0.26) (.63) (.67) (.73) (.83) (.90)
------ ------ ------ ------ ------ ------
Net asset value, end of period* ....................... $10.19 $10.10 $10.49 $ 9.00 $10.73 $10.43
------ ------ ------ ------ ------ ------
Market value, end of period* .......................... $8.875 $8.625 $8.625 $ 7.75 $10.75 $10.625
------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN+: ............................. 5.99% 7.30% 20.31% (22.16%) 9.33% 2.52%
RATIOS TO AVERAGE NET ASSETS:
Operating expenses # .................................. 0.87%+++ 0.91% 1.00% 1.06% 1.07% 1.08%
Net investment income ................................. 9.20%+++ 5.80% 7.53% 5.38% 5.09% 13.09%

SUPPLEMENTAL DATA:
Average net assets (in thousands) ..................... $95,517 $93,370 $93,044 $92,932 $102,302 $99,967
Portfolio turnover .................................... 23% 76% 94% 142% 18% 3%
Net assets, end of period (in thousands) .............. $96,889 $96,028 $99,723 $85,567 $102,094 $99,149
Reverse repurchase agreements outstanding,
end of period (in thousands) ....................... $45,552 $26,933 $48,581 $42,176 $ 50,000 $43,823
Asset coverage++ ...................................... $ 3,127 $ 4,565 $ 3,053 $ 3,029 $ 3,039 $ 3,263
</TABLE>

- ----------
* NAV and market value are published in THE WALL STREET JOURNAL each Monday.
# The ratios of operating expenses, including interest expense, to average
net assets were 3.01%+++, 3.06%, 5.86%, 3.59%, 2.58%, and 3.12%, for the
periods indicated above, respectively. The ratios of operating expenses,
including interest expense and excise tax, to average net assets were
3.01%+++, 3.18%, 5.97%, 3.66%, 2.74%, and 3.41% for the periods indicated
above, respectively.
+ 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 and
distributions are assumed, for purposes of this calculation, to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
This calculation does not reflect brokerage commissions. Total investment
return for periods of less than one full year are not 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.

10
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK ADVANTAGE TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

NOTE 1. ACCOUNTING POLICIES The BlackRock Advantage Term Trust Inc. (the
"Trust"), a Maryland corporation, is a
diversified, closed-end management investment company. The Trust's investment
objective is to manage a portfolio of investment grade fixed income securities
that will return $10 per share to investors on or shortly before December 31,
2005 while providing high monthly income. 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 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 unless the Trust's Board of Directors
determines that such price does not reflect its fair value, in which case it
will be valued at its fair value as determined by the Trust's Board of
Directors. 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 which mature in 60 days or less are valued at amortized
cost, if their term to maturity from date of purchase is 60 days or less.
Short-term securities with a term to maturity greater than 60 days from the date
of purchase are valued at current market quotations until maturity.

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
cost of the purchase or proceeds from the sale 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 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 anytime 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

11
<PAGE>

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.

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.

FINANCIAL FUTURES CONTRACTS: A futures contract is an agreement between two
parties to buy and 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 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 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 payments 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.

SECURITIES 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 theform 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
securities lending during the six months ended June 30, 1997.

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 substantially all taxable income to shareholders. Therefore, no
federal income tax provision is required. As part of its tax planning strategy,
the Trust intends to 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

12
<PAGE>

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.

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.

NOTE 2. AGREEMENTS The Trust has an Investment Advisory Agreement
with BlackRock Financial Management, Inc., (the
"Adviser"), a wholly owned corporate subsidiary of PNC Asset Management Group,
Inc., the holding company for PNC's asset management business and 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 Adviser is computed weekly and
payable monthly at an annual rate of 0.50% 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 Trust's average weekly net assets
through December 31, 2000 and 0.08% from January 1, 2001 to the termination or
liquidation of the Trust.

Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. 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 six months ended June 30, 1997
aggregated $51,297,727 and $29,862,695, respectively.

The Trust may invest up to 85% 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, 1997, the Trust held
5.3% of its portfolio assets in securities restricted as to resale including
5.3% in illiquid securities.

The Trust may from time to time purchase in the secondary market certain
mortgage pass-through securities packaged or master serviced by 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. It is possible under
certain circumstances, PNC Mortgage Securities Corp. or its affiliates 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.

The federal income tax basis of the Trust's investments at June 30, 1997 was
substantially the same as the basis for financial reporting and, accordingly,
net unrealized appreciation for federal income tax purposes was $5,745,650
(gross unrealized appreciation-$6,865,331; gross unrealized depreciation-
$1,119,681).

For federal income tax purposes, the Trust had a capital loss carryforward at
December 31, 1996 of approximately $3,590,700, of which $36,900 expires in 2001
and $3,553,800 expires in 2004. Accordingly, no capital gains distribution is
expected to be paid to shareholders until net gains have been realized in excess
of such amount.

During the six months ended June 30, 1997, the Trust entered into financial
futures contracts. Details of the open contracts at June 30, 1997 are as
follows:

VALUE AT VALUE AT
NUMBER OF EXPIRATION TRADE JUNE 30, UNREALIZED
CONTRACTS TYPE DATE DATE 1997 DEPRECIATION
- --------- ---- ---- ---- ---- ------------
Short
Position:
10 yr- Sept
354 T-Note 1997 $38,639,920 $38,904,938 ($265,018)
========

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 six months ended June 30, 1997 was approximately $37,157,855 at a weighted
average interest rate of approximately 5.44%. The maximum amount of reverse

13
<PAGE>
repurchase agreements outstanding at any month-end during the six months ended
June 30, 1997 was $47,752,250 as of April 30, 1997 which was 33.0% 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 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 enter into dollar rolls during the
six months ended June 30, 1997.

NOTE 5. CAPITAL There are 200 million shares of $.01 par value
common stock authorized. Of the 9,510,667 shares
outstanding at June 30, 1997, the Adviser owned 10,667 shares.

NOTE 6. DIVIDENDS Subsequent to June 30, 1997, the Board of
Directors of the Trust declared a dividend from
undistributed earnings of $0.052083 per share payable July 31, 1997, to
shareholders of record on July 15, 1997.

14
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK ADVANTAGE 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 automatically
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 custodian, 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 shares under the Plan below net asset value.

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 fee 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.

Experience under the Plan may indicate that changes are desirable.
Accordingly, 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.

The Annual Meeting of Trust Shareholders was held April 15, 1997 to vote on
the following matters:

(1) To elect four Directors to serve as follows:
<TABLE>
<CAPTION>

DIRECTOR CLASS TERM EXPIRING
------- ----- ----- -------
<S> <C> <C> <C>
Andrew F. Brimmer ................................. III 3 years 2000
Kent Dixon ........................................ III 3 years 2000
Laurence D. Fink .................................. III 3 years 2000
Walter F. Mondale ................................. II 2 years 1999
</TABLE>

Directors whose term of office continues beyond this meeting are Richard
E. Cavanagh, James Grosfeld, James Clayburn LaForce, Jr., Frank J.
Fabozzi, 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, 1997.

(3) To approve a new investment advisory agreement with BlackRock Financial
Management, Inc.

Shareholders elected the four Directors, ratified the selection of
Deloitte & Touche LLP, and ratified the new investment advisory agreement.
The results of the voting was as follows:
<TABLE>
<CAPTION>

VOTES FOR VOTES AGAINST ABSTENTIONS
--------- ------------- -----------
<S> <C> <C> <C>
Andrew F. Brimmer ................................ 4,659,971 0 263,685
Kent Dixon ....................................... 4,661,779 0 261,877
Laurence D. Fink ................................. 4,661,779 0 261,877
Walter F. Mondale ................................ 4,628,160 0 295,496
Ratification of Deloitte & Touche LLP ............ 4,673,424 114,493 135,738
Ratification of new investment advisory agreement. 3,632,185 1,084,516 206,955
</TABLE>

15
<PAGE>

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

THE TRUST'S INVESTMENT OBJECTIVE

The Trust's 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, 2005
while providing high monthly income.

WHO MANAGES THE TRUST?

BlackRock Financial Management, Inc. ("BlackRock" or the "Adviser") is the
investment adviser for the Trust. BlackRock is a registered investment adviser
specializing in fixed income securities. Currently, BlackRock manages
approximately $50 billion of assets across the government, mortgage, corporate
and municipal sectors. These assets are managed on behalf of institutional and
individual investors in 21 closed-end funds which trade on either the New York
Stock or American Stock Exchanges, several open-end funds and separate accounts
for more than 125 clients in the U.S. and overseas. BlackRock is a subsidiary of
PNC Asset Management Group, Inc. which is a division of PNC Bank, N.A., one of
the nation's largest banking organizations.

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 ADVISER'S INVESTMENT STRATEGY?

The Adviser 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 Trust 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 2005. At the Trust's termination,
BlackRock 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 addition to seeking the return of the initial offering price, the Adviser
also seeks to provide high monthly income to investors. The portfolio managers
will attempt to achieve this objective by investing in securities that provide
competitive income. In addition, leverage will be used (in an amount up to
331/3% of total assets) to enhance the income of the portfolio. In order to
maintain competitive yields as the Trust approaches maturity and depending on
market conditions, the Adviser 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. However, the Adviser will attempt to maintain a
yield which is competitive with a comparable maturity Treasury at the same point
on the yield curve (i.e. if the Trust has three years left until its maturity,
the Adviser will attempt to maintain a yield at a spread over a 3-year
Treasury). 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.

16
<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 adviser. 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. In general, the portfolio
is typically leveraged at approximately 331/3% of total assets. 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 rate
environment. BlackRock'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 BlackRock 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.

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 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 less than 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.

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- --------------------------------------------------------------------------------
THE BLACKROCK ADVANTAGE 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.

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: This is 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 dividends
and distributions of 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 Administration, 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
U.S. 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.

GOVERNMENT SECURITIES: Securities issued or guaranteed by the U.S.
government, or one of its agencies or
instrumentalities, such as GNMA (Government
National Mortgage Association), FNMA (Federal
National Mortgage Association) and FHLMC
(Federal Home Loan Mortgage Corporation).

18
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INTEREST-ONLY SECURITIES (I/O): Mortgage securities that receive only the
interest cash flows from an underlying pool of
mortgage loans or underlying pass-through
securities. Also known as a strip.

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 Fannie
Mae, Freddie Mac or Ginnie Mae.

MULTIPLE-CLASS PASS-THROUGHS: Collateralized Mortgage Obligations.

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 (P/O): Mortgage securities that receive only the
principal cash flows from an underlying pool of
mortgage loans or underlying pass-through
securities. Also known as a strip.

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, Fannie Mae 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.

STRIP 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.

19
<PAGE>

BLACKROCK

DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
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
Frank Smith, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY

INVESTMENT ADVISER
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(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
919 Third Avenue
New York, NY 10022

The accompanying financial statements as of June 30, 1997 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 ADVANTAGE 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 09247-A10 1

THE BLACKROCK
ADVANTAGE
TERM TRUST INC.
================================================================================
SEMI-ANNUAL REPORT
JUNE 30, 1997

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