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SIGNATURE HENRY GABBAY
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000872604
<NAME> THE BLACKROCK 1998 TERM TRUST INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 744,725,305
<INVESTMENTS-AT-VALUE> 710,686,640
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</TABLE>
To the Shareholders and Board of Directors of
The BlackRock 1998 Term Trust Inc.:
In planning and performing our audit of the financial statements of The
BlackRock 1998 Term Trust Inc. for the year ended December 31, 1994, 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 BlackRock 1998 Term Trust Inc. 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 transactions
are executed in accordance with management's authorization and recorded properly
to permit preparation of financial statements in conformity with generally
accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and may 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
December 31, 1994.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
Deloitte & Touche LLP
New York, New York
February 16, 1995
For the fiscal year ended (a) December 31, 1994
File number (c) 811-6284
SUB-ITEM 77J
Changes in Accounting Principles and Practices
The Trust accounts for and reports distributions to shareholders in
accordance with the A.I.C.P.A.'s 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 by $500,000 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.
