<PAGE> PAGE 1
000 B000000 07/31/98
000 C000000 000853180
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 Y
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 VAN KAMPEN PRIME RATE INC TR
001 B000000 811-05845
001 C000000 6306846000
002 A000000 ONE PARKVIEW PLAZA
002 B000000 OAKBROOK TERRACE
002 C000000 IL
002 D010000 60181
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 VAN KAMPEN INVESTMENT ADVISORY
008 B000001 A
008 C000001 801-18161
008 D010001 OAKBROOK TERRACE
008 D020001 IL
008 D030001 60181
010 A000001 VAN KAMPEN FUNDS INC.
010 B000001 8-19412
010 C010001 OAKBROOK TERRACE
010 C020001 IL
010 C030001 60181
011 A000001 PRUDENTIAL BACHE SECURITIES INC.
011 B000001 8-27154
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10292
012 A000001 VAN KAMPEN INVESTOR SERVICES INC.
012 B000001 84-01621
012 C010001 KANSAS CITY
<PAGE> PAGE 2
012 C020001 MO
012 C030001 64141
013 A000001 KPMG PEAT MARWICK LLP
013 B010001 CHICAGO
013 B020001 IL
013 B030001 60601
014 A000001 MORGAN STANLEY & CO., INCORPORATED
014 B000001 8-733537
014 A000002 DEAN WITTER REYNOLDS, INC.
014 B000002 8-728181
015 A000001 STATE STREET BANK AND TRUST CO.
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02105
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 118
019 C000000 VANKAMPENA
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 BA SECURITIES
022 B000001 95-4035346
022 C000001 33846003
022 D000001 11783
022 A000002 CHASE MANHATTEN
022 B000002 13-2633612
022 C000002 5650467
022 D000002 75822
022 A000003 TORONTO DOMINION
022 B000003 13-6066548
022 C000003 5161270
022 D000003 9491
022 A000004 CITIBANK
022 B000004 13-3187336
022 C000004 3699579
022 D000004 80977
022 A000005 CIBC
022 B000005 13-1942440
022 C000005 1568932
022 D000005 20109
<PAGE> PAGE 3
022 A000006 GOLDMAN SACHS
022 B000006 13-5108880
022 C000006 986161
022 D000006 13666
022 A000007 NATIONSBANK
022 B000007 68-0193243
022 C000007 709067
022 D000007 17500
022 A000008 STATE STREET BANK & TRUST
022 B000008 04-1867445
022 C000008 349030
022 D000008 0
022 A000009 BANKERS TRUST
022 B000009 13-4941247
022 C000009 254496
022 D000009 82784
022 A000010 MORGAN GUARANTY
022 B000010 13-5123346
022 C000010 269257
022 D000010 2452
023 C000000 53592083
023 D000000 403531
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 0
028 C010000 0
028 C020000 0
<PAGE> PAGE 4
028 C030000 0
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 0
028 H000000 0
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
035 000000 0
036 B000000 0
038 000000 0
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 4000000
048 A020000 0.950
048 B010000 3500000
048 B020000 0.900
048 C010000 2500000
048 C020000 0.875
048 D010000 0
048 D020000 0.000
<PAGE> PAGE 5
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 10000000
048 K020000 0.850
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 N
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 N
060 B000000 N
061 000000 1000
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
<PAGE> PAGE 6
062 I000000 2.0
062 J000000 0.0
062 K000000 0.0
062 L000000 4.3
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 90.5
062 R000000 1.6
063 A000000 0
063 B000000 6.1
064 A000000 N
064 B000000 Y
065 000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 N
070 O020000 N
070 P010000 N
<PAGE> PAGE 7
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 5864054
071 B000000 4408915
071 C000000 6027309
071 D000000 73
072 A000000 12
072 B000000 536580
072 C000000 0
072 D000000 0
072 E000000 20698
072 F000000 63012
072 G000000 16948
072 H000000 0
072 I000000 7457
072 J000000 1898
072 K000000 0
072 L000000 271
072 M000000 192
072 N000000 881
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 91
072 S000000 2008
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 2947
072 X000000 95705
072 Y000000 0
072 Z000000 461573
072AA000000 0
072BB000000 17725
072CC010000 26279
072CC020000 0
072DD010000 461726
072DD020000 0
072EE000000 0
073 A010000 0.6770
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 0
074 B000000 0
074 C000000 151250
074 D000000 0
074 E000000 0
<PAGE> PAGE 8
074 F000000 119079
074 G000000 0
074 H000000 0
074 I000000 6983596
074 J000000 9272
074 K000000 0
074 L000000 84173
074 M000000 56
074 N000000 7347426
074 O000000 0
074 P000000 8627
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 25916
074 S000000 0
074 T000000 7312883
074 U010000 733069
074 U020000 0
074 V010000 9.98
074 V020000 0.00
074 W000000 0.0000
074 X000000 240457
074 Y000000 0
075 A000000 0
075 B000000 6779031
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 C000000 65000
081 A000000 Y
<PAGE> PAGE 9
081 B000000 117
082 A000000 Y
082 B000000 100
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 134357
086 A020000 1
086 B010000 12241
086 B020000 122898
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
088 A000000 N
088 B000000 N
088 C000000 N
088 D000000 N
SIGNATURE NICK DALMASO
TITLE ATTORNEY
Peat Marwick Plaza
303 East Wacker Drive
Chicago, IL 60601-9973
The Board of Trustees and Shareholders of
Van Kampen Prime Rate Income Trust:
In planning and performing our audit of the financial statements of Van Kampen
Prime Rate Income Trust (the "Trust") for the year ended July 31, 1998, we
considered its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on the internal control
structure.
The management of the Trust is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
costs of internal control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition and that transactions are executed in
accordance with management's authorization and recorded properly to permit the
preparation of financial statements in accordance with generally accepted
accounting principles.
Because of inherent limitations in any system of internal control structure,
errors or irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
July 31, 1998.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/S/ KPMG Peat Marwick LLP
September 4, 1998
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> PRIME RATE INCOME TRUST
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-START> AUG-01-1997
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 7,259,106,112
<INVESTMENTS-AT-VALUE> 7,253,924,890
<RECEIVABLES> 93,445,520
<ASSETS-OTHER> 55,596
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,347,426,006
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 34,542,603
<TOTAL-LIABILITIES> 34,542,603
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,334,578,416
<SHARES-COMMON-STOCK> 733,069,022
<SHARES-COMMON-PRIOR> 626,018,023
<ACCUMULATED-NII-CURRENT> 10,753,143
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (27,266,934)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (5,181,222)
<NET-ASSETS> 7,312,883,403
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 536,579,706
<OTHER-INCOME> 20,698,500
<EXPENSES-NET> (95,705,514)
<NET-INVESTMENT-INCOME> 461,572,692
<REALIZED-GAINS-CURRENT> (17,725,403)
<APPREC-INCREASE-CURRENT> 26,278,934
<NET-CHANGE-FROM-OPS> 470,126,223
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (461,726,242)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 165,907,778
<NUMBER-OF-SHARES-REDEEMED> (83,492,883)
<SHARES-REINVESTED> 24,636,104
<NET-CHANGE-IN-ASSETS> 1,075,915,622
<ACCUMULATED-NII-PRIOR> 5,369,829
<ACCUMULATED-GAINS-PRIOR> (7,592,891)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 63,011,682
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 95,705,514
<AVERAGE-NET-ASSETS> 6,779,031,291
<PER-SHARE-NAV-BEGIN> 9.963
<PER-SHARE-NII> 0.675
<PER-SHARE-GAIN-APPREC> 0.015
<PER-SHARE-DIVIDEND> (0.677)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.976
<EXPENSE-RATIO> 1.41
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>