BLACKROCK MUNICIPAL TARGET TERM TRUST INC
N-30D, 1996-08-23
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                 THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
                       SEMI-ANNUAL REPORT TO SHAREHOLDERS
                          REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------

                                                                   July 31, 1996



Dear Trust Shareholder:

    After posting  strong  returns  during 1995,  the fixed income  markets have
given  back much of their  gains in 1996 in  response  to a  strengthening  U.S.
economy.  Accelerating  economic  growth has raised  concerns about an increased
inflationary   environment,   which  could  erode  the  value  of  fixed  income
investments.  The  stronger  economy  also has led some market  participants  to
consider the possibility that the Federal Reserve may increase interest rates to
thwart  inflation  threats after three  interest rate  reductions  over the past
twelve months.

    Despite the pick-up in economic growth, we believe that current inflationary
fears will  subside.  Commodity  prices have risen but  manufacturers  will have
difficulty  passing  along the  increased  costs of raw  materials to consumers,
whose debt levels as a percentage of disposable  income are at the highest point
since the recessionary highs of 1990. We believe that the overleveraged consumer
will have to retrench,  restricting  future  economic  expansion  and creating a
positive environment for bonds in the latter half of this year.

    The following  semi-annual  report provides detailed market commentary and a
review of portfolio  management  activity.  We believe that BlackRock's duration
controlled management style and risk management  capabilities will allow each of
our Trusts to achieve its long-term investment objective.

    We look forward to  maintaining  your respect and  confidence and to serving
your financial needs in the coming years.


Sincerely,




Laurence D. Fink                            Ralph L. Schlosstein
Chairman                                    President






                                       1
<PAGE>

                                                                   July 31, 1996
Dear Shareholder,

    We are pleased to present the semi-annual report for The BlackRock Municipal
Target Term Trust Inc.  ("the Trust") for the six months ended June 30, 1996. 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  closed-end bond fund whose investment  objective
is to manage a portfolio of municipal debt  securities  that will return $10 per
share  (an  amount  equal to the  Trust's  initial  public  offering  price)  to
investors on or about  December 31, 2006,  while  providing  high current income
exempt  from  regular  federal  income  tax.  The Trust  seeks to  achieve  this
objective  by  investing  in high  credit  quality  ("AAA" or  insured to "AAA")
tax-exempt general obligation and revenue bonds issued by city, county and state
municipalities throughout the United States.

    The table below  summarizes  the  performance of the Trust's stock price and
net asset value (the market value of its bonds per share) over the period.


                             ---------------------------------------------------
                             6/30/96     12/31/95     Change      High     Low
- --------------------------------------------------------------------------------
Stock Price                  $10.250     $10.125       1.23%     $10.50   $10.00
- --------------------------------------------------------------------------------
Net Asset Value (NAV)        $10.76      $11.14       (3.41%)    $11.30   $10.61
- --------------------------------------------------------------------------------
    
The Fixed Income Markets

    The  domestic  fixed  income  markets  witnessed  two  profoundly  different
environments  during the past six months,  providing an exciting and challenging
environment  in which to manage the Trust.  The  Treasury  market  rally of 1995
continued through the middle of February 1996, as market demand for fixed income
securities remained strong due to a combination of moderate economic growth, low
absolute  levels of inflation  and two  reductions of the Fed funds target rate.
The rally halted during mid-February,  however, as data indicating  accelerating
economic  growth  rekindled  inflationary  concerns.  The  strengthening  of the
economy continued throughout the second quarter,  leading market participants to
become more  resolute in their  belief that the  Federal  Reserve  will  tighten
monetary  policy during the second half of 1996.  These fears  translated into a
sharp rise in bond yields  across the  Treasury  yield  curve,  resulting in the
fixed income markets rescinding much of their 1995 gains.

    After lagging the performance of its Treasury counterparts during the fourth
quarter  of  1995,  municipal  bonds  have  outperformed  taxable  fixed  income
securities in 1996. The diminished  possibility of significant tax reform, which
had  threatened the  tax-exempt  status of municipal  bond income,  helped renew
investor  interest  in  the  municipal  sector.  Additionally,   municipal  bond
investors received approximately $60 billion in cash during the June/July period
resulting  from bond calls,  interest  payments and  redemptions.  A significant
portion of this  money has been  reinvested  in the  municipal  market,  as high
municipal  bond absolute  yields  convinced  many investors to bypass the equity
markets.  For the  period,  the  yield of the  10-year  AAA  General  Obligation
increased  47 basis  points  (0.47%) to close at 5.11% versus at 114 basis point
rise in the yield of the 10-year Treasury note. Despite the potential decline in
retail demand as the June/July  cash flows are  reinvested,  BlackRock  believes
that  municipal  bonds have the  potential  to continue to  outperform  Treasury
securities for the remainder of 1996.




                                       2
<PAGE>



The Trust's Portfolio and Investment Strategy



    The Trust's  portfolio is invested in high  credit-quality  municipal issues
with ratings of "AAA" by Standard & Poor's Corporation (or of equivalent quality
as determined by other major rating agencies).  In addition, the majority of the
individual  securities  within the portfolio are insured as to timely payment of
interest and principal by municipal bond  insurance  companies  whose  long-term
obligations are rated "AAA". As such,  Standard & Poor's has given a AAAf rating
to the portfolio.  BlackRock  Financial  Management actively manages the Trust's
portfolio to diversify exposure to various sectors, issuers, revenue sources and
security  types which fit within the context of the Trust seeking to achieve its
investment objectives.



    Additionally,  the Trust  employs  leverage at about 35% of total  assets to
enhance its income by borrowing at short term municipal  rates and investing the
proceeds in longer maturity  issues with higher yields.  The degree to which the
Trust can benefit  from its use of  leverage  may affect its ability to pay high
monthly income. After steepening during the first quarter of 1996, the municipal
yield curve has recently  flattened,  as longer  maturity  municipal  bonds have
outperformed  shorter  municipals.  This  resulted in a  narrowing  of the yield
differential, or "spread", between long and short maturities.



    The following chart compares the Trust's current and December 31, 1995 asset
composition:

- --------------------------------------------------------------------------------
                     The BlackRock Municipal Target Term Trust Inc.
- --------------------------------------------------------------------------------
Sector                                       June 30, 1996    December 31, 1995
- --------------------------------------------------------------------------------
City, County and State                            21%                  21%
- --------------------------------------------------------------------------------
Hospital                                          15%                  15%
- --------------------------------------------------------------------------------
Transportation                                    15%                  14%
- --------------------------------------------------------------------------------
Tax Revenue                                       14%                  14%
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Water & Sewer                                     10%                  10%
- --------------------------------------------------------------------------------
Utility                                            8%                   9%
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Lease Revenue                                      6%                   7%
- --------------------------------------------------------------------------------
Education                                          4%                   4%
- --------------------------------------------------------------------------------
Other                                              3%                   4%
- --------------------------------------------------------------------------------
Building                                           2%                   2%
- --------------------------------------------------------------------------------
Pollution Control/Resource Recovery                2%                    %
- --------------------------------------------------------------------------------



                                       3
<PAGE>



    We look  forward  to  continuing  to manage  the Trust to  benefit  from the
opportunities  available to investors in the investment grade municipal  market.
We  thank  you for your  investment  and  continued  interest  in The  BlackRock
Municipal  Target Term Trust Inc. Please feel free to call our marketing  center
at (800)  227-7BFM  (7236) if you have any  specific  questions  which  were not
addressed in this report. 


Sincerely yours,





Robert S. Kapito                            Kevin Klingert
Vice Chairman and Portfolio Manager         Managing Director and Municipal 
BlackRock Financial Management, Inc.        Portfolio Manager
                                            BlackRock Financial Management, Inc.




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                    The BlackRock Municipal Target Term Trust Inc.
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange:                               BMN
- --------------------------------------------------------------------------------
Initial Offering Date:                                    September 27, 1990
- --------------------------------------------------------------------------------
Closing Stock Price as of 6/30/96:                              $10.25
- --------------------------------------------------------------------------------
Net Asset Value as of 6/30/96:                                  $10.76
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 6/30/96 ($10.25)1:            6.00%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Common Share2:                $0.05125
- --------------------------------------------------------------------------------
Current Annualized Distribution per Common Share2:             $0.6250
- --------------------------------------------------------------------------------

- ------------
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>

- --------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
Portfolio of Investments
June 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------
         Principal                                  Option
          Amount                                     Call               Value
Rating*   (000)           Descriptions            Provisions++        (Note 1)
- --------------------------------------------------------------------------------
                   LONG-TERM INVESTMENTS-145.5%
                    Alabama-1.0%
                    Hoover Brd. of Ed. Spl. Tax. 
                      Wts., G.O., AMBAC,
AAA     $ 1,700         6.50%, 2/01/01+ .........  No Opt. Call    $  1,844,789
AAA       1,815         6.60%, 2/01/01+ .........  No Opt. Call       1,976,953
AAA       1,025         6.625%, 2/01/01+ ........  No Opt. Call       1,117,506
                                                                   ------------
                                                                      4,939,248
                                                                   ------------
                    Alaska-4.5%
AAA       7,500     Anchorage Elec. Util. Rev., 
                      7.125%, 6/01/06, MBIA .....   6/99 at 102       8,096,550
AAA       4,845     Fairbanks Mun. Util. Auth. 
                      Rev., Ser. A, 7.10%, 
                      1/01/05, AMBAC ............   1/99 at 102       5,147,667
                    No. Slope Boro.,
AAA       5,000       Ser. A, Zero Coupon, 
                        6/30/06, MBIA ...........  No Opt. Call       2,909,800
AAA       9,000       Ser. B, Zero Coupon, 
                        6/30/04, CGIC ...........  No Opt. Call       5,927,580
                                                                   ------------
                                                                     22,081,597
                                                                   ------------
                    Arizona-1.1%
AAA       5,010     Tucson Bus. Dev. Fin. Corp. 
                      Lease Rev., 6.25%, 7/01/06, 
                      FGIC ......................   7/02 at 102       5,317,313
                                                                   ------------
                    California-4.5%
AAA       6,000     California St., G.O., 6.30%, 
                      9/01/06, AMBAC ............  No Opt. Call       6,527,580
AAA       1,910     California St., Pub. Wrks. 
                      Rev., Ser. A, 6.20%, 
                      12/01/06, AMBAC ...........  12/02 at 102       2,028,267
AAA       4,000     Glendale Hosp. Rev., 
                      Adventist Hlth. Ctr., 
                      Ser. A, 6.50%, 3/01/07, 
                      MBIA ......................   3/01 at 102       4,260,120
                    Los Angeles Wst. Wtr. Sys. 
                      Rev., MBIA,
AAA       5,570       5.625%, 6/01/07 ...........   6/03 at 102       5,666,194
AAA       3,320       Ser. D, 6.60%, 12/01/06 ...  12/00 at 102       3,548,350
                                                                   ------------
                                                                     22,030,511
                                                                   ------------
                    Colorado-2.0%
                    Denver City & Cnty. Wtr. Brd. 
                      Rev., C.O.P., FGIC,
AAA       3,410       6.50%, 5/15/11 ............  11/01 at 101       3,613,611
AAA       1,875       6.60%, 11/15/06 ...........  11/01 at 101       2,004,657
AAA       3,865       6.625%, 11/15/07 ..........  11/01 at 101       4,118,080
                                                                   ------------
                                                                      9,736,348
                                                                   ------------
                    District of Columbia-1.7%
AAA       8,250     District of Columbia, G.O., 
                      Ser. B, 5.90%, 
                      6/01/06, MBIA .............   6/04 at 102       8,484,795
                                                                   ------------
                    Florida-13.3%
                    Florida St. Div. Bd. Fin. 
                      Dept. Gen. Svcs. Rev. 
                      (Dept. Nat. Res. & Pres.),
AAA       7,000       6.45%, 7/01/07, MBIA ......   7/01 at 101       7,525,840
AAA       6,975       6.75%, 7/01/07, AMBAC .....   7/01 at 102       7,567,805
AAA       2,190     Florida St. Sunshine 
                      Skyway Rev., 6.60%, 
                      7/01/07, MBIA .............   7/01 at 101       2,358,827
                    Greater Orlando Aviation 
                      Auth., Arpt. Facs. Rev., 
                      Ser. B, FGIC,
AAA       4,760       6.55%, 10/01/06 ...........  10/02 at 102       5,206,393
AAA       5,070       6.55%, 10/01/07 ...........  10/02 at 102       5,545,465
AAA       3,155     Gulf Breeze, Local Gov't., 
                      Ln. Pkg. Rev., 7.70%, 
                      12/01/15, FGIC ............  12/99 at 102       3,443,683
AAA       2,650     Jacksonville Hlth. Facs. 
                      Auth. Rev., Mem. Med. 
                      Ctr., Ser. A, 6.625%, 
                      5/01/01, MBIA .............  No Opt. Call       2,910,177
AAA       7,500     Jacksonville Hosp. Rev., 
                      Univ. Med. Ctr. Inc. Proj., 
                      6.50%, 2/01/07, 
                      CONNIE LEE ................   2/02 at 102       8,015,025
AAA       4,000     Kissimmee Util. Auth. Rev., 
                      Elec. Sply., 6.70%, 
                      10/01/07, MBIA ............  10/97 at 102       4,180,160
AAA       2,000     No. Broward Hosp. Rev., 
                      6.50%, 1/01/07, MBIA ......   1/02 at 102       2,157,020

                       See Notes to Financial Statements.




                                       5
<PAGE>


- --------------------------------------------------------------------------------
         Principal                                  Option
          Amount                                     Call               Value
Rating*   (000)           Descriptions            Provisions++        (Note 1)
- --------------------------------------------------------------------------------
                    Florida (cont'd)
AAA     $10,645     Orange Cnty., Tourist Dev. 
                      Tax Rev., Ser. A, 6.375%, 
                      10/01/06, AMBAC ...........  10/02 at 102    $ 11,544,502
AAA       2,570     Tampa Auth. Rev., St. 
                      Joseph Hlth. Ctr., 6.70%, 
                      12/01/07, MBIA ............  12/01 at 102       2,793,590
AAA       1,600     Tampa Util. Tax & Spec. 
                      Rev., 6.80%, 10/01/06, 
                      AMBAC .....................  10/01 at 102       1,758,976
                                                                    -----------
                                                                     65,007,463
                                                                    -----------
                    Georgia-0.4%
AAA       1,990     Burke Cnty. Dev. Auth. 
                      Poll. Ctrl. Rev., 
                      Oglethorpe Pwr. Corp.,
                      Ser. B, 6.45%, 1/01/05, 
                      MBIA ......................   1/04 at 101       2,123,728
                                                                    -----------
                    Illinois-15.8%
AAA       4,930     Alton Hlth. Facs. Rev., 
                      Christian Hlth. Ctr., 
                      7.00%, 2/15/01+, FGIC .....  No Opt. Call       5,453,221
AAA       5,000     Chicago, G.O., Ser. A, 
                      7.25%, 1/01/06, MBIA ......   7/96 at 102       5,100,000
                    Chicago Cent. Pub. Library, 
                      G.O., AMBAC,
AAA       1,800       Ser. A, 6.75%, 1/01/07 ....   4/02 at 102       1,957,248
AAA       1,600       Ser. C, 6.75%, 1/01/07 ....   4/02 at 102       1,739,776
AAA       5,555     Cook Cnty., Ser. A, 6.40%, 
                      11/15/06, MBIA ............  11/02 at 102       5,918,353
AAA       1,775     Cook Cnty. Cmnty. Sch. 
                      Dist., G.O., Ser. A, 
                      6.375%, 1/01/07, FGIC .....   1/02 at 100       1,899,765
                    Illinois Hlth. Facs. Auth. 
                      Rev.,
AAA       3,300       Elmhurst Mem. Hosp., 6.60%, 
                      1/01/07, FGIC .............   1/02 at 102       3,527,964
AAA      14,585       Sisters Svcs., Inc., 
                      Ser. C, 6.625%, 6/01/06, 
                      MBIA ......................   6/02 at 102      15,734,298
                    Illinois Regl. Trans. Auth. 
                      Rev., Ser. A, FGIC,
AAA       2,780       6.55%, 11/01/06 ...........  11/01 at 102       2,968,428
AAA       6,125       6.625%, 11/01/08 ..........  11/01 at 102       6,522,941
AAA       8,725     Illinois St. G.O., 6.40%, 
                      12/15/07, AMBAC ...........  12/01 at 102       9,215,694
                    Illinois St. Sales Tax Rev., 
                      Ser. O,
AAA       5,900       Zero Coupon, 6/15/07 ......  No Opt. Call       3,208,302
AAA       5,635       Zero Coupon, 6/15/08 ......  No Opt. Call       2,865,059
AAA       6,000       6.50%. 6/15/06 ............   6/01 at 102       6,428,040
AAA       2,000       6.60%, 6/15/08 ............   6/01 at 102       2,151,320
AAA       2,000     Will Cnty. Cmnty. Sch. 
                      Dist. Rev., 7.05%, 
                      12/01/08, AMBAC ...........   No Opt.Call       2,288,560
                                                                    -----------
                                                                     76,978,969
                                                                    -----------
                    Indiana-2.7%
AAA       9,000     Indiana Univ. Rev., Student 
                      Fee, Zero Coupon, 8/01/06, 
                      AMBAC .....................  No Opt. Call       5,167,350
AAA       2,270     Noblesville West Indpt. 
                      Sch. Bldg. Corp., G.O., 
                      7.00%, 7/01/07, MBIA ......   1/01 at 102       2,478,522
AAA       5,000     Warsaw High Sch. Bldg. 
                      Corp., G.O., 6.90%, 
                      7/01/05, MBIA .............   7/00 at 102       5,360,100
                                                                    -----------
                                                                     13,005,972
                                                                    -----------
                    Kentucky-3.2%
                    Danville Multi-City Lease 
                      Rev., Swr. & Drain Sys., 
                      MBIA,
AAA       2,015       6.60%, 3/01/02+ ...........  No Opt. Call       2,213,034
AAA       2,160       6.65%, 3/01/02+ ...........  No Opt. Call       2,377,555
AAA       3,750     Kentucky Dev. Fin. Auth. 
                      Rev., Sisters of Charity, 
                      6.60%, 11/01/06, MBIA .....  11/01 at 102       4,036,313
AAA       6,410     Kentucky St. Ppty. & Bldgs. 
                      Auth. Rev., Proj. 53, 
                      6.625%, 10/01/07, MBIA ....  10/01 at 102       6,883,186
                                                                    -----------
                                                                     15,510,088
                                                                    -----------
                    Louisiana-6.9%
                    Jefferson Sales Tax Dist. 
                      Rev., FGIC,
AAA      21,000       Ser. A, 6.75%, 12/01/06 ...  12/02 at 100      22,597,470
AAA       4,000       Ser. B, 6.75%, 12/01/06 ...  12/02 at 100       4,304,280
AAA       3,500     Louisiana St., G.O., Ser. A, 
                      6.50%, 5/01/07, AMBAC .....   5/02 at 102       3,752,560
AAA       5,250     New Orleans, G.O., Ref., 
                      Zero Coupon, 9/01/06, 
                      AMBAC .....................  No Opt. Call       3,024,420
                                                                    -----------
                                                                     33,678,730
                                                                    -----------

                       See Notes to Financial Statements.



                                       6
<PAGE>

- --------------------------------------------------------------------------------
         Principal                                  Option
          Amount                                     Call               Value
Rating*   (000)           Descriptions            Provisions++        (Note 1)
- --------------------------------------------------------------------------------
                    Massachusetts-5.3%
AAA     $ 3,670     Mansfield, G.O., 6.65%, 
                      1/15/07, AMBAC ............   1/02 at 102    $  3,972,702
                    Massachusetts Bay Trans. Auth. 
                      Rev., Gen. Tran. Sys., 
                      Ser. A, MBIA,
AAA      20,015       6.625%, 3/01/01+ ..........  No Opt. Call      21,931,636
                                                                    -----------
                                                                     25,904,338
                                                                    -----------
                    Michigan-9.1%
                    Detroit Swr. Disp. Rev., FGIC,
AAA       1,655       6.60%, 7/01/01+ ...........  No Opt. Call       1,819,772
AAA       1,765       6.65%, 7/01/01+ ...........  No Opt. Call       1,944,606
AAA       1,880       6.70%, 7/01/01+ ...........  No Opt. Call       2,071,027
AAA       3,750     Grand Rapids Wtr. Sply. Rev., 
                      6.625%, 1/01/08, FGIC .....   1/01 at 102       3,982,387
                    Michigan Mun. Bond Auth.,
AAA       5,000       G.O., Ser. D, Zero Coupon, 
                      5/15/06, MBIA .............  No Opt. Call       2,926,700
AAA       1,840       Local Gov't. Loan Prog., 
                      6.35%, 11/01/06, AMBAC ....  11/04 at 102       2,005,692
                    Michigan St. Bldg. Auth. Rev.,
AAA      11,590       Ser. I, 6.75%, 10/01/07, 
                      MBIA ......................  10/01 at 102      12,527,747
AAA       3,850       Ser. II, 6.75%, 10/01/07, 
                      AMBAC .....................  10/01 at 102       4,161,503
AAA      11,940     Michigan St. Hosp. Fin. 
                      Auth. Rev., Sparrow Oblig. 
                      Grp., 6.60%, 11/15/07, 
                      MBIA ......................  11/01 at 102      12,769,114
                                                                    -----------
                                                                     44,208,548
                                                                    -----------
                    Nevada-5.5%
AAA       6,210     Clark Cnty. Flood Ctrl., G.O., 
                      6.40%, 11/01/06, AMBAC ....  11/01 at 101       6,598,932
                    Clark Cnty. Sch. Dist., G.O., 
                      Ser. A, MBIA,
AAA      11,000       6.70%, 3/01/06 ............   3/01 at 101      11,823,130
AAA       1,500       6.75%, 3/01/07 ............   3/01 at 101       1,612,080
                    Nye Cnty. Sch. Dist., G.O., 
                      BIG,
AAA       2,835       7.25%, 5/01/99+ ...........  No Opt. Call       3,093,552
AAA       3,250     Reno Hosp. Auth. Rev., 
                      St. Mary Regl. Med. Ctr., 
                      6.70%, 7/01/06, MBIA ......   7/01 at 102       3,518,710
                                                                    -----------
                                                                     26,646,404
                                                                    -----------
                    New Hampshire-0.5%
AAA       2,310     New Hampshire High. Ed. Auth. 
                      Rev., Elliot Hosp. of 
                      Manchester, 6.70%, 
                      10/01/06, AMBAC ...........  10/01 at 102       2,503,878
                                                                    -----------
                    New Jersey-16.3%
AAA      10,500     Elizabeth, G.O., 6.60%, 
                      8/01/06, MBIA .............   8/01 at 102      11,362,050
                    Howell Twp., Ref, G.O., FGIC,
AAA       7,715       6.70%, 1/01/06 ............   1/02 at 102       8,460,115
AAA       2,925       6.75%, 1/01/07                1/02 at 102       3,199,628
                    New Jersey St. Hlth. Care Facs. 
                      Fin. Auth. Rev., Hackensack 
                      Med. Ctr., FGIC,
AAA      12,755       6.65%, 7/01/06 ............   7/01 at 102      13,818,767
AAA       3,735       6.70%, 7/01/07 ............   7/01 at 102       4,028,832
AAA       1,765     New Jersey St. Hwy. Auth. Rev., 
                      Garden St. Pkwy., 6.15%, 
                      1/01/07, AMBAC ............   1/02 at 102       1,864,670
AAA      30,000     New Jersey St. Tpk. Auth. 
                      Rev., Ser. C, 6.40%, 
                      1/01/07, AMBAC ............   1/01 at 102      31,832,400
                    No. Jersey Dist. Wtr. Sply. 
                      Cmnty. Rev., MBIA,
AAA       2,525       Wanaque No. Proj., Ser. B, 
                      6.50%, 11/15/06 ...........  11/01 at 102       2,724,879
AAA       1,065       Wanaque So. Proj., 6.50%, 
                      7/01/06 ...................   7/01 at 102       1,150,669
AAA       1,250     Warren Cnty. Poll. Ctrl. 
                      Fin. Auth. Rev., 6.55%, 
                      12/01/06, MBIA ............  12/02 at 102       1,365,837
                                                                    -----------
                                                                     79,807,847
                                                                    -----------
                    New Mexico-0.8%
AAA       3,535     Gallup Poll. Ctrl. Rev., 
                      6.50%, 8/15/07, MBIA ......   8/02 at 102       3,796,944
                                                                    -----------


                       See Notes to Financial Statements.


                                       7
<PAGE>

- --------------------------------------------------------------------------------
         Principal                                  Option
          Amount                                     Call               Value
Rating*   (000)           Descriptions            Provisions++        (Note 1)
- --------------------------------------------------------------------------------
                    New York-11.9%
                    Mun. Asst. Corp. Rev.,
AAA     $ 5,000       Ser. 57, 7.00%, 7/01/06, 
                      AMBAC .....................   7/96 at 102     $ 5,100,000
AAA       3,500       Ser. 61, 6.875%, 7/01/07, 
                      FGIC ......................   7/97 at 102       3,662,295
AAA       6,500       Ser. 61, 6.875%, 7/01/07, 
                      AMBAC .....................   7/97 at 102       6,801,405
AAA       3,500       Ser. 62, 6.90%, 7/01/07, 
                      AMBAC .....................   7/97 at 102       3,663,170
                    New York City Mun. Wtr. Fin. 
                      Auth. Rev., Wtr. & Swr. 
                      Sys., Ser. A, FGIC,
AAA      11,100       6.15%, 6/15/07 ............ 6/02 at 101.5      11,664,102
AAA       2,160       6.75%, 6/15/06 ............   6/01 at 101       2,331,439
AAA       2,660       7.00%, 6/15/07 ............   6/01 at 101       2,903,603
AAA      10,000     New York City, G.O., Ser. E, 
                      6.125%, 8/01/06, MBIA .....  No Opt. Call      10,628,300
AAA       4,500     New York St. Environ. Facs. 
                      Corp., Poll. Ctrl. Rev., 
                      Ser. D, 6.40%, 5/15/06 ....  11/04 at 102       4,930,200
AAA       6,000     Triborough Brdg. & Tunl. 
                      Auth. Rev., Ser. B, 6.70%, 
                      1/01/08, FGIC .............   1/01 at 102       6,482,100
                                                                    -----------
                                                                     58,166,614
                                                                    -----------
                    North Carolina-1.3%
AAA       6,000     North Carolina Eastern Mun. 
                      Pwr. Agcy. Sys. Rev., 
                      Ser. B. 6.00%, 1/01/06, 
                      CAPMAC ....................  No Opt. Call       6,284,400
                                                                    -----------
                    North Dakota-0.4%
AAA       2,035     Grand Forks Hlth. Care Facs. 
                      Rev., United Hosp. Oblig. 
                      Grp., 6.50%, 12/01/06, 
                      MBIA ......................  12/01 at 102       2,177,572
                                                                    -----------
                    Pennsylvania-10.4%
AAA       6,200     Beaver Cnty. Hosp. Auth., 
                      6.625%, 7/01/06, AMBAC ....   7/02 at 102       6,673,494
AAA       1,500     Coatesville Sch. Dist., G.O., 
                      6.60%, 3/01/01+, AMBAC ....  No Opt. Call       1,612,260
AAA      10,000     Harrisburg Auth. Lease Rev., 
                      6.625%, 6/01/01+, CGIC ....  No Opt. Call      10,810,600
AAA       7,450     Pennsylvania St., G.O., 
                      Ser. A, 6.50%, 11/01/07, 
                      FGIC ......................11/01 at 101.5       7,954,141
AAA       1,445     Pennsylvania St. Higher Ed. 
                      Rev., 6.75%, 7/01/07, 
                      MBIA ......................   7/01 at 102       1,595,005
AAA       4,500     Pennsylvania St. Tpk. Auth. 
                      Rev., Ser. O, 5.80%, 
                      12/01/07, FGIC ............  12/02 at 102       4,593,150
                    Philadelphia Mun. Auth., 
                      Justice Lease Rev.,
AAA       1,550       Ser. A, 7.00%, 11/15/04, 
                      MBIA ......................  11/01 at 102       1,707,573
AAA       2,370       Ser. B, 7.10%, 11/15/01+, 
                      FGIC ......................  No Opt. Call       2,661,771
                    Pittsburgh & Allegheny Cntys. 
                      Rev., AMBAC,
AAA       1,015       Ser. A, 6.50%, 7/15/06 ....   7/01 at 100       1,067,354
AAA         900       Ser. B, 6.50%, 7/15/06 ....   7/01 at 100         946,422
AAA       2,500     Schuylkill Cnty. Redev. Auth. 
                      Common Lease Rev., Ser. A, 
                      7.00%, 6/01/01+, FGIC .....  No Opt. Call       2,734,100
AAA       7,800     Westmoreland Cnty., G.O., 
                      6.70%, 8/01/01+ AMBAC, ....  No Opt. Call       8,460,426
                                                                    -----------
                                                                     50,816,296
                                                                    -----------
                    Rhode Island-2.5%
AAA      11,220     Conv. Ctr. Auth. Rev., Ser. A, 
                      6.60%, 5/15/01+, MBIA .....   5/01 at 102      12,264,582
                                                                    -----------
                    South Carolina-2.1%
AAA       4,390     Piedmont Mun. Pwr. Agy. Elec. 
                      Rev., 6.85%, 1/01/07, 
                      FGIC ......................   1/01 at 102       4,728,337
AAA       5,100     Rock Hill Util. Sys. Rev., 
                      6.50%, 1/01/07, FGIC ......   1/01 at 102       5,414,007
                                                                    -----------
                                                                     10,142,344
                                                                    -----------
                    Tennessee-0.5%
AAA       2,350     Met. Nashville, Arpt. Rev., 
                      Ser. C, 6.625%, 7/01/07, 
                      FGIC ......................   7/01 at 102       2,501,223
                                                                    -----------

                       See Notes to Financial Statements.



                                       8
<PAGE>



- --------------------------------------------------------------------------------
         Principal                                  Option
          Amount                                     Call               Value
Rating*   (000)           Descriptions            Provisions++        (Note 1)
- --------------------------------------------------------------------------------
                    Texas-17.2%
AAA     $ 2,000     Austin Util. Sys. Rev., 
                      6.875%, 5/15/07, AMBAC ....   5/01 at 102     $ 2,161,900
AAA       8,500     Cypress-Fairbanks Indpt. 
                      Sch. Dist., G.O., Zero 
                      Coupon, 8/01/06, AMBAC ....  No Opt. Call       4,894,725
AAA      10,000     Dallas Fort Worth Regl. 
                      Arpt. Rev., Ser. A, 6.00%, 
                      11/01/09, MBIA ............  11/04 at 100      10,262,500
AAA       5,800     El Paso Cnty. Tax Ref., 
                      G.O., Ser. B, 6.40%, 
                      2/15/07, MBIA .............   2/02 at 100       6,091,508
                    Ft. Bend Cnty., Tax. Perm. 
                      Imprvt., G.O., FGIC,
AAA       3,375       6.60%, 9/01/02+ ...........  No Opt. Call       3,676,657
                    Harris Cnty. Rev., Toll Rd. 
                      Sr. Lien, Ser. A, FGIC,
AAA      10,395       6.50%, 8/15/02+ ...........  No Opt. Call      11,418,804
AAA       3,160       6.50%, 8/15/02+ ...........  No Opt. Call       3,471,228
AAA       1,955       6.50%, 8/15/06 ............   8/02 at 102       2,109,152
AAA         590       6.50%, 8/15/07 ............   8/02 at 102         633,306
AAA      15,000      Houston Wtr. & Swr. Sys. 
                       Rev., Ser. B, 6.75%, 
                       12/01/08, FGIC ...........  12/01 at 102      16,151,700
AAA       1,900      No. Central Texas Hlth. 
                       Fac. Dev. Corp. Rev., 
                       Children's Med. Ctr. 
                       of Dallas,
                       6.375%, 10/01/06, MBIA ...  10/01 at 102       2,013,107
AAA       1,550      No. Texas Wtr. Dist., 6.40%, 
                       6/01/07, MBIA ............   6/03 at 100       1,637,296
AAA       3,000      Round Rock Indpt. Sch. 
                       Dist., G.O., 6.75%, 
                       8/15/01+, MBIA ...........  No Opt. Call       3,262,410
AAA      15,000      Texas Mun. Pwr. Agy. Rev., 
                       Ref., Zero Coupon, 
                       9/01/06, AMBAC ...........  No Opt. Call       8,675,550
AAA       3,745      Texas St. Bldg. Fin. Auth. 
                       Rev., 7.00%, 2/01/01+, 
                       MBIA .....................  No Opt. Call       4,079,803
AAA       3,395      Tyler Cnty. Hlth. Facs. 
                       Dev. Corp. Rev., Mother 
                       Francis Hosp.,
                       6.50%, 7/01/06, FGIC .....   7/02 at 102       3,645,449
                                                                    -----------
                                                                     84,185,095
                                                                    -----------
                     Washington-4.1%
AAA       1,250      Snohomish Cnty. Pub. Util. 
                       Dist., Elec. Rev., 6.55%, 
                       1/01/07, FGIC ............   1/02 at 102       1,378,263
                     Snohomish Cnty. Sch. Dist., 
                       G.O., MBIA,
AAA       3,835        6.70%, 12/01/06 ..........  12/01 at 100       4,100,919
AAA       4,145        6.75%, 12/01/07 ..........  12/01 at 100       4,421,927
                     Washington St. Pub. Pwr. 
                       Sply. Sys. Rev., Nuclear 
                       Proj. #2, Ser. A,
AAA      12,875        Zero Coupon, 7/01/06, 
                       MBIA .....................  No Opt. Call       7,477,028
AAA       2,265        6.50%, 7/01/05, FGIC .....   7/01 at 102       2,417,004
                                                                    -----------
                                                                     19,795,141
                                                                    -----------
                     Wisconsin-0.6%
AAA       2,850      Wisconsin Hlth. & Ed. Fac. 
                      Auth., Columbia Hosp. Rev., 
                      6.50%, 11/15/06, MBIA .....  11/01 at 102       3,043,031
                                                                    -----------
                     Total Long-Term Investments 
                       (cost $660,760,347)                          711,139,019
                                                                    -----------

                     SHORT-TERM INVESTMENTS**-0.4%
                     New York-0.2%
AAA       1,000      New York City Mun. Wtr. Fin. 
                       Auth. Rev., FRDD, 3.55%, 
                       7/01/96 ..................           N/A       1,000,000
                                                                    -----------
                     Washington-0.1%
A1+         650      Washington St. Hlth. Care 
                       Facs. Auth. Rev., FRDD, 
                       3.55%, 7/01/96 ...........           N/A         650,000
                                                                    -----------
                     Wyoming-0.1%
P1          350      Uinta Cnty. Poll. Ctrl. 
                       Rev., Chevron Inc. Proj., 
                       FRDD, 3.50%, 7/01/96 .....           N/A         350,000
                                                                    -----------
                     Total Short-Term Investments 
                       (cost $2,000,000) ........                     2,000,000
                                                                    -----------

                      See Notes to Financial Statements.



                                       9
<PAGE>



- --------------------------------------------------------------------------------
         Principal                                  Option
          Amount                                     Call               Value
Rating*   (000)           Descriptions            Provisions++        (Note 1)
- --------------------------------------------------------------------------------
                     Total Investments-145.9% 
                       (cost $662,760,347) ......                   $713,139,01
                     Other assets in excess of 
                       liabilities-0.1% .........                       613,863
                     Liquidation value of 
                      preferred stock-(46.0)% ...                  (225,000,000)
                                                                    -----------
                     Net Assets Applicable to 
                       Common Shareholders-100% .                  $488,752,882
                                                                    ===========

 + This bond is prerefunded. See glossary for definition.
++ Option call provisions:  date  (month/year) and prices of the earliest option
   call or redemption.  There may be other call  provisions at varying prices at
   later dates.
 * Rating: Using the higher of Standard & Poor's, Moody's or Fitch's rating.
** For  purposes  of  amortized  cost  valuation,  the  maturity  date of  these
   instruments  are  considered to be the next date on which the security can be
   redeemed at par or the next date on which the rate of interest is adjusted.


- ---------------------------------------------------------------
                   KEY TO ABBREVIATIONS 
AMBAC         -American Municipal Bond Assurance Corporation
BIG           -Bond Investors Guaranty Insurance Company
CAPMAC        -Capital Markets Assurance Corporation
CGIC          -Capital Guaranteed Insurance Company
C.O.P.        -Certificate of Participation
CONNIE LEE    -College Construction Loan Insurance Association
FGIC          -Financial Guaranty Insurance Company
FRDD          -Floating Rate Daily Demand
G.O.          -General Obligation Bond
MBIA          -Municipal Bond Insurance Association
- ----------------------------------------------------------------


                      See Notes to Financial Statements.




                                       10
<PAGE>


- --------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
Statement of Assets and Liabilities
June 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------

(Left Column)

Assets
Investments, at value (cost
  $662,760,347) (Note 1) ........................................  $713,139,019
Cash ............................................................        30,548
Interest receivable .............................................    11,876,953
Deferred organization expenses and
  other assets ..................................................         5,198
                                                                   ------------
                                                                    725,051,718
                                                                   ------------
Liabilities
Payable for investments purchased ...............................    10,262,700
Dividends payable-common stock ..................................       277,909
Dividends payable-preferred stock ...............................       208,850
Advisory fee payable (Note 2) ...................................       204,541
Administration fee payable (Note 2) .............................        40,908
Other accrued expenses ..........................................       303,928
                                                                   ------------
                                                                     11,298,836
                                                                   ------------
Net Investment Assets ...........................................  $713,752,882
                                                                   ============

Net investment assets were comprised of:
  Common stock:
    Par value (Note 4) ..........................................   $   454,106
    Paid-in capital in excess of par ............................   421,119,385
  Preferred stock (Note 4) ......................................   225,000,000
                                                                   ------------
                                                                    646,573,491
  Undistributed net investment income ...........................    16,723,984
  Accumulated net realized gain .................................        76,735
  Net unrealized appreciation ...................................    50,378,672
                                                                   ------------
  Net investment assets, June 30, 1996 ..........................  $713,752,882
                                                                   ============
  Net assets applicable to common
    shareholders ................................................  $488,752,882
                                                                   ============
Net asset value per common share:
  ($488,752,882 / 45,410,639 shares of
  common stock issued and outstanding) ..........................        $10.76
                                                                         ======

(Right Column)


- --------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
Statement of Operations
Six Months Ended June 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------

Net Investment Income

Income

  Interest and discount earned ..................................   $21,429,031
                                                                    -----------
Expenses

  Investment advisory ...........................................     1,272,599

  Auction agent .................................................       281,000

  Administration ................................................       254,520

  Custodian .....................................................       102,000

  Reports to shareholders .......................................        62,000

  Directors .....................................................        36,000

  Transfer agent ................................................        27,000

  Audit .........................................................        12,000

  Legal .........................................................        10,000

  Miscellaneous .................................................       183,055
                                                                    -----------
      Total expenses ............................................     2,240,174
                                                                    -----------
Net investment income ...........................................    19,188,857
                                                                    -----------


Realized and Unrealized Gain (Loss)
  on Investments (Note 3)

  Net realized gain on investments ..............................        73,702
  Net change in unrealized appreciation
    (depreciation) on investments ...............................   (18,610,966)
                                                                    -----------
  Net loss on investments .......................................   (18,537,264)
                                                                    -----------

Net Increase in Net Investment Assets
Resulting from Operations .......................................   $   651,593
                                                                    ===========
                   
                       See Notes to Financial Statements.





                                       11
<PAGE>


- --------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
Statements of Changes
in Net Investment Assets
(Unaudited)
- --------------------------------------------------------------------------------
                                                    Six Months
                                                    Ended Year         Ended
                                                     June 30,       December 31,
                                                       1996             1995
                                                    ----------      ------------
Increase (Decrease) in Net Investment Assets
Operations:
  Net investment income ........................  $ 19,188,857     $ 39,312,334
  Net realized gain on investments .............        73,702        1,759,203
  Net change in unrealized appreciation 
    (depreciation) on investments ..............   (18,610,966)      49,939,651
                                                  ------------     ------------
  Net increase in net investment assets 
    resulting from operations ..................       651,593       91,011,188
                                                  ------------     ------------
Dividends and distributions:
  To common shareholders from net 
    investment income ..........................   (13,963,771)     (27,927,543)
  To preferred shareholders from 
    net investment income ......................    (3,994,617)      (8,475,663)
                                                  ------------     ------------
                                                   (17,958,388)     (36,403,206)
                                                  ------------     ------------
  To common shareholders from capital gains ....         -           (1,500,458)
  To preferred shareholders from capital gains .         -             (454,791)
                                                   ------------     ------------
                                                        -           (1,955,249)
                                                  ------------     ------------
    Total increase (decrease) ..................   (17,306,795)      52,652,733
                                                  ------------     ------------
Net Investment Assets
  Beginning of period ..........................   731,059,677      678,406,944
                                                  ------------     ------------
  End of period ................................  $713,752,882     $731,059,677
                                                  ============     ============

                   
                       See Notes to Financial Statements.


                                       12
<PAGE>

- -------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
Financial Highlights
(Unaudited)
- --------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                                                                         September 30,
                                                    Six Months                                               1991
                                                      Ended               Year Ended December 31,           through 
                                                     June 30,    --------------------------------------   December 31,
                                                       1996       1995       1994       1993       1992       1991
                                                      ------     ------     ------     ------     ------     ------                 
<S>                                                   <C>        <C>        <C>        <C>        <C>        <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ..............   $11.14     $ 9.98     $11.30     $10.04     $ 9.56     $ 9.40
                                                      ------     ------     ------     ------     ------     ------
  Net investment income ...........................      .42        .87        .83        .82        .82        .13
  Net realized and unrealized gain (loss) on
  investments .....................................     (.40)      1.14      (1.39)      1.17        .42        .22
                                                      ------     ------     ------     ------     ------     ------
Net increase (decrease) from investment operations       .02       2.01       (.56)      1.99       1.24        .35
                                                      ------     ------     ------     ------     ------     ------
Dividends from net investment income to:
  Preferred shareholders ..........................     (.09)      (.19)      (.14)      (.12)      (.15)      (.02)
  Common shareholders .............................     (.31)      (.62)      (.62)      (.61)      (.61)      (.05)
                                                      ------     ------     ------     ------     ------     ------
  Total dividends .................................     (.40)      (.81)      (.76)      (.73)      (.76)      (.07)
                                                      ------     ------     ------     ------     ------     ------
Distributions from capital gains to:
  Preferred shareholders ..........................        -       (.01)         -          -          -          -
  Common shareholders .............................        -       (.03)         -          -          -          -
                                                      ------     ------     ------     ------     ------     ------
Total distributions ...............................        -       (.04)         -          -          -          -
Capital charge with respect to issuance of shares .        -         -           -          -          -       (.12)
                                                      ------     ------     ------     ------     ------     ------
Net asset value, end of period** ..................   $10.76     $11.14     $ 9.98     $11.30     $10.04     $ 9.56#
                                                      ======     ======     ======     ======     ======     ======
Market value, end of period** .....................   $10.25     $10.125    $ 8.875    $10.375    $10.00     $ 9.625
                                                      ======     ======     ======     ======     ======     ======
TOTAL INVESTMENT RETURN+ ..........................    4.29%     21.67%     (8.89%)     10.01%    10.51%      2.93%
RATIOS TO AVERAGE NET ASSETS
  OF COMMON SHAREHOLDERS+++:
Operating expenses ................................     .91%++     .90%       .94%        .87%      .91%        .81++
Net investment income .............................    7.79%++    8.06%      7.91%       7.61%     8.43%      5.80%++
SUPPLEMENTAL DATA:
Average net assets of common shareholders
  (in thousands) .................................. $495,605   $487,923   $475,529    $492,138  $441,368   $418,353
Portfolio turnover                                        1%         9%        21%          1%       35%         1%
Net assets of common shareholders, end of period
  (in thousands) .................................. $488,753   $506,060   $453,407    $513,339  $455,954   $434,166
Asset coverage per share of preferred stock,
  end of period## .................................   79,329   $ 81,243   $150,783    $164,075  $151,323   $146,481
Preferred stock outstanding (in thousands) ........ $225,000   $225,000   $225,000    $225,000  $225,000   $225,000

<FN>
  * Commencement of investment operations.
 ** Net asset value and market value are published in The Wall Street Journal each Monday.
  # Net asset value immediately after the closing of the initial public offering was $9.28.
 ## A stock split occured on July 24, 1995 (Note 4).
  + Total investment  return is calculated  assuming a purchase of common stock at the current  market  price  on the
    first  day  and  a  sale  at  the  current  market price  on the last day of each period reported. Dividends  are
    assumed,  for purposes of this  calculation  to be  reinvested  at prices  obtained  under the  Trust's  dividend
    reinvestment plan. This calculation does not reflect brokerage commissions. Total investment returns for  periods
    of less than one full year are not annualized.
 ++ Annualized.
+++ Ratios calculated on the basis of income and expenses applicable to both the common and preferred shares relative
    to the  average  net assets of common  shareholders.  Ratios do  not  reflect the effect of dividend  payments to 
    preferred  shareholders.  
</FN>

</TABLE>

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 common stock.

                       See Notes to Financial Statements.



                                       13
<PAGE>


- -------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
Notes to Financial Statements
(Unaudited)
- -------------------------------------------------------------------------------

(Left Column)

Note 1. Accounting
Policies

The  BlackRock  Municipal  Target  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 diversified  portfolio of investment
grade  securities  that  will  return  $10 per  share to  investors  on or about
December 31, 2006 while  providing  current  income exempt from regular  federal
income tax. The ability of issuers of debt  securities held by the Trust to meet
their obligations may be affected by economic  developments in a specific state,
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:  Municipal securities  (including  commitments to purchase
such  securities  on a  "when-issued"  basis)  are valued on the basis of prices
provided  by  a  pricing  service  which  uses   information   with  respect  to
transactions  in bonds,  quotations  from bond dealers,  market  transactions in
comparable   securities  and  various   relationships   between   securities  in
determining values. 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 more than 60 days are valued at current
market  quotations.  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, or by amortizing their value on the 61st day prior to maturity, if
their original term to maturity from date of purchase exceeded 60 days.

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 commis-

(Right Column)

sions,  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.

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.

  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.

Short Sales: The Trust may make short sales of securities as a method of hedging
potential  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 greater
or less than the proceeds originally received.




                                       14
<PAGE>



(Left Column)

Securities  Transactions  and Investment  Income:  Securities  transactions  are
recorded  on the trade date.  Realized  gains and losses are  calculated  on the
identified cost basis.  Interest income is recorded on the accrual basis and the
Trust  amortizes  premium and accretes  original  issue  discount on  securities
purchased using the interest method.

Federal  Income  Taxes:  It is the  Trust's  intention  to  continue to meet the
requirements  of the Internal  Revenue Code  applicable to regulated  investment
companies  and to distribute  sufficient  net income to  shareholders.  For this
reason and because  substantially  all of the Trust's  gross income  consists of
tax-exempt interest, no federal income tax provision is required.

Dividends and  Distributions:  The Trust  declares and pays  dividends to common
shareholders  monthly from net  investment  income.  Capital  gains,  if any, in
excess  of  loss  carryforwards  may  be  distributed  annually.  Dividends  and
distributions are recorded on the ex-dividend date.  Dividends and distributions
to preferred shareholders are accrued and determined as described in Note 4.

Deferred  Organization  Expenses:  A total of $70,000 was incurred in connection
with the organization of the Trust. These costs have been deferred and are being
amortized  ratably  over a period  of  sixty  months  from  the  date the  Trust
commenced investment operations. 

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 Mutual Fund Management,
Inc. ("PMF"), an indirect,  wholly owned subsidiary of The Prudential  Insurance
Company of America.

  The investment advisory fee paid to the Adviser is computed weekly and payable
monthly at an annual rate of 0.35% of the Trust's  average weekly net investment
assets.  The  administration fee paid to PMF is also computed weekly and payable
monthly at an annual rate of 0.07% of the Trust's  average weekly net investment
assets.

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.  PMF pays occupancy and certain clerical and
accounting costs of the Trust. The Trust bears all other costs and expenses.

Note 3. Portfolio
Securities

Purchases and sales of investment securities, other than short-term investments,
for the six months ended June 30, 1996  aggregated  $10,162,700  and $5,583,800,
respectively.

(Right Column)

  The federal  income tax basis of the Trust's  investments at June 30, 1996 was
substantially  the same as the  basis  for  financial  reporting  purposes  and,
accordingly, net and gross unrealized appreciation was $50,378,672.

Note 4. Capital

There are 200 million shares of $.01 par value common stock  authorized.  Of the
45,410,639 common shares  outstanding at June 30, 1996, the Adviser owned 10,639
shares.  As of June 30, 1996, there were 9,000 preferred  shares  outstanding as
follows: Series W7-3,000, Series F7-3,000 and Series W28-3,000.

  The Trust may classify or reclassify any unissued  shares of common stock into
one or  more  series  of  preferred  stock.  On  November  21,  1991  the  Trust
reclassified  4,500 shares of common stock and issued 3 series of Auction Market
Preferred Stock ("Preferred Stock") as follows:  Series W7-1,500 shares,  Series
F7-1,500  shares  and  Series  W28-1,500  shares.  The  Preferred  Stock  had  a
liquidation  value  of  $50,000  per  share  plus  any  accumulated  but  unpaid
dividends.  On May 16, 1995 shareholders approved a proposal to split each share
of  preferred  stock into two  shares and  simultaneously  reduce  each  share's
liquidation  preference  from $50,000 to $25,000 plus any accumulated but unpaid
dividends. The stock split occurred on July 24, 1995.

  Dividends on Series W7 and Series F7 are  cumulative  at a rate which is reset
every 7 days based on the  results of an  auction.  Dividends  on Series W28 are
also  cumulative  at a rate which is reset every 28 days based on the results of
an auction.  Dividend  rates  ranged  from 3.14% to 3.75%  during the six months
ended June 30, 1996.

  The Trust may not declare  dividends or make other  distributions on shares of
common  stock or purchase  any such  shares if, at the time of the  declaration,
distribution,  or  purchase,  asset  coverage  with  respect to the  outstanding
Preferred Stock would be less than 200%.

  The Preferred  Stock is redeemable at the option of the Trust,  in whole or in
part, on any dividend  payment date at $25,000 per share plus any accumulated or
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory  redemption  at  $25,000  per  share  plusany  accumulated  or  unpaid
dividends,  whether or not  declared  if certain  requirements  relating  to the
composition  of the  assets  and  liabilities  of the  Trust as set forth in the
Articles of Incorporation are not satisfied.

  The  holders of  Preferred  Stock have voting  rights  equal to the holders of
common stock (one vote per share) and will vote  together with holders of shares
of common stock as a single class. However,  holders of Preferred Stock are also





                                       15
<PAGE>

(Left Column)

entitled to elect two of the Trust's  directors.  In  addition,  the  Investment
Company Act of 1940 requires that along with approval by shareholders that might
otherwise  be  required,  the  approval  of the  holders  of a  majority  of any
outstanding  preferred shares, voting separately as a class would be required to
(a) adopt any plan of  reorganization  that would adversely affect the Preferred
shares and (b) take any action requiring a vote of security holders,  including,
among other  things,  changes in the Trust's  subclassification  as a closed-end
investment company or changes in its fundamental investment restrictions.


(Right Column)

Note 5. Dividends

Subsequent  to June 30,  1996,  the Board of  Directors  of the  Trust  declared
dividends from undistributed  earnings of $0.05125 per common share payable July
31, 1996 to shareholders of record on July 15, 1996.

  For  the  period  July  1,  1996  to July 31, 1996 dividends and distributions
declared  on  preferred  shares  totalled  $646,457  in  aggregate for the three
outstanding preferred share series.


Note 6. Quarterly Data

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
                                                           Net Increase
                                       Net realized and      (decrease)     
                                          unrealized      in net investment      
                     Net Investment      gain (loss)      assets resulting             Dividends
                          Income        on Investments    from operations    Common Shares   Preferred Shares*
                                Per                Per                Per              Per               Per  Share price of end net
Quarterly    Total            common             common             common           common            common  Common Stock   asset
 period     Income    Amount   share   Amount     share  Amount      share  Amount    share    Amount   share  High    Low    value
 ------     ------    --------------   ----------------  -----------------  ---------------    --------------  ------------  -------
<S>      <C>        <C>        <C>  <C>            <C>   <C>         <C>    <C>       <C>      <C>       <C>   <C>     <C>    <C>
January 1,
1994 to
March 31,
1994 ....$10,507,914 $9,400,533 $.21 $(43,506,373) $(.96)$(34,105,840)$(.75)$6,981,886 $.15375 $1,259,117 $.03 $10-7/8 $9-5/8 $10.37

April 1,
1994 to
June 30,
1994 .... 10,495,844  9,429,834  .21     (866,471)  (.02)   8,563,363   .19  6,981,885  .15375  1,571,564  .03  10-1/8  9-3/8  10.37

July 1, 
1994 to
September
30, 1994. 10,551,216  9,425,932  .21   (5,116,231)  (.11)   4,309,701   .10  6,981,886  .15375  1,695,136  .03  10      9-3/8  10.28

October 1, 
1994 to 
December 
31, 1994. 10,520,366  9,362,479  .20  (13,561,487)  (.30)  (4,199,008) (.10) 6,981,886  .15375  2,046,561  .05   9-3/4  8-1/4   9.98

January 1, 
1995 to
March 31, 
1995 .... 10,652,689  9,619,611  .21   29,779,929    .66   39,399,540   .87  6,981,886  .15375  2,233,857  .05   9-7/8  8-3/4  10.65

April 1, 
1995 to
June 30, 
1995....  10,600,843  9,529,910  .21    5,897,362    .13   15,427,272   .34  6,981,885  .15375  2,260,138  .05  10      9-5/8  10.79

July 1, 
1995 to 
September 
30, 1995. 11,745,300 10,646,786  .24    6,545,040    .14   17,191,826   .38  7,161,132  .15770  2,120,077  .05  10-3/16 9-3/4  10.96

October 1,
1995 to 
December
31, 1995. 10,702,981  9,516,027  .21    9,476,523    .21   18,992,550   .42  8,303,098  .18284  2,315,382  .05  10-5/8  10     11.14

January 1, 
1996 to 
March 31, 
1996....  10,733,378  9,619,451  .21  (12,417,987)  (.27)  (2,798,536) (.06) 6,981,886  .15375  1,988,126  .04  10-1/2  10     10.88

April 1, 
1996 to 
June 30, 
1996...   10,695,653  9,569,406  .21   (6,119,277)  (.13)   3,450,129   .08  6,981,885  .15375  2,006,491  .05  10-3/8  10     10.76
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
- ------------
*For the six months  ended June 30,  1996 the  average  annualized  rate paid to preferred shareholders was 3.57%.
</FN>
</TABLE>



                                       16
<PAGE>


- --------------------------------------------------------------------------------
                 THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
                             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 May 8, 1996 to vote on the
following matters:

    (1) To elect three Directors to serve as follows:
        Director                       Class           Term             Expiring
        --------                       -----           ----             --------
        Richard E. Cavanagh*             I            3 years             1999
        James Grosfeld                   I            3 years             1999
        James Clayburn LaForce           I            3 years             1999
        *Represents the preferred Shareholders.

        Directors whose term of office  continues beyond this meeting are Andrew
        F. Brimmer, Kent Dixon, Frank J. Fabozzi,  Laurence D. Fink 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, 1996.
    (3) To modify  the  investment  restriction  prohibiting  investing  for the
        purpose of exercising  control over the  management  of a company.  

Shareholders  elected the three Directors,  ratified the selection of Deloitte &
Touche  LLP  and  approved  the  modification  of  the  investment   restriction
prohibiting  investing for the purpose of exercising control over the management
of a company. The results of the voting was as follows:

                                      Votes for     Votes Against    Abstentions
                                     ----------     -------------    -----------
        Richard E. Cavanagh .......     5,071            -                   4
        James Grosfeld ............  22,513,908          -             725,723
        James Clayburn LaForce ....  22,503,179          -             736,452
        Ratification of 
          Deloitte & Touche LLP ...  22,329,061       200,317          710,253
        Investment restriction ....  17,401,684       876,418        1,400,228







                                       17
<PAGE>

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

The Trust's Investment Objective

The  Trust's  investment  objective  is to provide  current  income  exempt from
regular  Federal  income  tax and to return $10 per share  (the  initial  public
offering price per share) to investors on or about December 31, 2006.

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 $41 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 traded on the New York or American
Stock  Exchanges,  several  open-end  funds and over 80  separate  accounts  for
various 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 nations
largest banking organizations.

What Can the Trust Invest In?

The Trust  intends to invest  substantially  all of its assets in a  diversified
portfolio of tax-exempt Municipal  Obligations which are rated Aaa by Moody's or
AAA by S &P or are covered by insurance  or a guaranty of the timely  payment of
both  principal  and interest  from an entity  having a Aaa or AAA rating or are
determined by the Trust's adviser to be of comparable credit quality.

What is the Adviser's Investment Strategy?

The primary  investment  strategy for the Trust is to seek to closely  match the
maturity of the assets of the  portfolio  with the future  return of the initial
investment  on or about  December  31,  2006.  Accordingly,  the majority of the
funds' assets are invested in securities  which have maturities that are similar
to the maturity  date of the fund.  Most  municipal  securities,  however,  have
optional redemption provisions (or "calls") which allow the issuer to redeem the
bonds on specified dates prior to their  maturity.  While call features are more
predictable  than  prepayments  on  mortgage-backed   securities,  they  require
additional active ,management  considerations for the Trust. If a portion of the
Trust is invested in callable bonds,  the yield to call date is analyzed instead
of the yield to the  maturity  of the bond,  and should the  security be called,
BlackRock will generally seek to reinvest the proceeds in additional assets with
maturities  which are not  significantly  longer than the remaining  term of the
Trust. In addition,  in order to seek to earn back the underwriting discount and
upfront  expenses and have the ability to return the full initial  investment at
the end of the term, the Trust  generally seeks to retain a small portion of the
income earned on its portfolio each year.

In addition to seeking the return of the  initial  offering  price,  the Adviser
also  seeks  to  provide  current  income  exempt  from  Federal  income  tax to
investors.  The  portfolio  managers  will attempt to achieve this  objective by
investing in securities that provide competitive tax-exempt income. In addition,
leverage  will be used  (in an  amount  up to 35% of the  portfolio  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 will be  reinvested  in  securities  with
maturities  which coincide with the remaining term of the Trust. 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.  If  market  conditions,  such as high
interest rate volatility,  force a choice between current income and risking the
return  of the  initial  offering  price,  it is likely  that the  return of the
initial offering price will be emphasized.

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  






                                       18
<PAGE>





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 and
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 issuance of preferred
stock  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 35% 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
rapidly 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 the issuance of preferred stock
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:  BMN) 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.

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.

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.

Municipal Obligations.  Municipal obligations include debt obligations issued by
states,  cities, and local authorities,  and possessions and certain territories
of the United States to obtain funds for various public purposes,  including the
construction of public  facilities,  the refinancing of outstanding  obligations
and the obtaining of funds for general operating expenses and for loans to other
public  institutions  and  facilities.  The value of municipal  debt  securities
generally  varies  inversely with changes in prevailing  market  interest rates.
Depending  on the amount of call  protection  that the  securities  in the Trust
have, the Trust may be subject to certain  reinvestment risks in environments of
declining interest rates.

Alternative  Minimum Tax (AMT).  The Trust may invest in  securities  subject to
alternative minimum tax.


                                       19
<PAGE>



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

  Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),  shareholders
may elect to have all distributions of dividends and capital gains automatically
reinvested  by State Street Bank and Trust  Company (the "Plan  Agent") in Trust
shares.  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 for the participants'  accounts.  The Trust will not issue shares
under 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 income tax 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.




                                       20
<PAGE>



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

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 have all distributions of dividends
                            and  capital  gains  automatically  reinvested  into
                            additional shares of the Trust.

Embedded  Caps:             Also known as additional  interest  municipal bonds.
                            These  securities are intended to protect the income
                            that  the  Trust   earns   through   leverage   from
                            significant   increases  in  short-term  rates.  The
                            coupon on these bonds will  increase  if  short-term
                            rates rise significantly.

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.

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 and The New York Times on
                            Saturday or The Wall Street Journal each Monday.

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

Pre-refunded Bonds:         These   securities   are   collateralized   by  U.S.
                            Government  securities  which are held in escrow and
                            are used to pay  principal  and  interest on the tax
                            exempt issue and retire the bond in full at the date
                            indicated, typically at a premium to par.

Total  Investment  Return:  A measurement of a fund's  performance,  taking into
                            account the  combination  of dividends  paid and the
                            increase  in the  market  value of a Trust's  common
                            shares.  It may be  expressed  on an average  annual
                            basis or cumulative basis (total change over a given
                            period). In addition, total investment return may be
                            expressed with or without the effect of reinvestment
                            of  dividends   and  capital   gains.   This  report
                            calculates total  investment  return with reinvested
                            dividends and capital gains.


                                       21
<PAGE>



- --------------------------------------------------------------------------------
                       BlackRock Financial Management Inc.
                           Summary of Closed-End Funds
- --------------------------------------------------------------------------------

Taxable Trusts
- --------------------------------------------------------------------------------
                                                                    Termination
Perpetual Trusts                                       Stock Symbol     Date
                                                       ------------  ----------
The BlackRock Income Trust Inc. .......................    BKT           N/A
The BlackRock North American Government
  Income Trust Inc. ...................................    BNA           N/A

Term Trusts

The BlackRock 1998 Term Trust Inc. ....................    BBT          12/98
The BlackRock 1999 Term Trust Inc. ....................    BNN          12/99
The BlackRock Target Term Trust Inc. ..................    BTT          12/00
The BlackRock 2001 Term Trust Inc. ....................    BLK          06/01
The BlackRock Strategic Term Trust Inc. ...............    BGT          12/02
The BlackRock Investment Quality Term Trust Inc. ......    BQT          12/04
The BlackRock Advantage Term Trust Inc. ...............    BAT          12/05
The BlackRock Broad Investment Grade 2009
  Term Trust Inc. .....................................    BCT          12/09

Tax-Exempt Trusts
- --------------------------------------------------------------------------------
                                                                    Termination
Perpetual Trusts                                       Stock Symbol     Date
                                                       ------------  ----------
The BlackRock Investment Quality Municipal Trust Inc. .    BKN           N/A
The BlackRock California Investment Quality
  Municipal Trust Inc. ................................    RAA           N/A
The BlackRock Florida Investment Quality
  Municipal Trust .....................................    RFA           N/A
The BlackRock New Jersey Investment Quality
  Municipal Trust Inc. ................................    RNJ           N/A
The BlackRock New York Investment Quality
  Municipal Trust Inc. ................................    RNY           N/A

Term Trusts

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



  If you would like further information please call BlackRock at (800) 227-7BFM
                     or consult with your financial advisor


                                       22
<PAGE>


Directors
Laurence D. Fink, Chairman
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Ralph L. Schlosstein

Officers
Ralph L. Schlosstein, President
Keith T. Anderson, Vice President
Michael C. Huebsch, Vice President
Robert S. Kapito, Vice President
Kevin Klingert, Vice President
Richard M. Shea, Vice President/Tax
Henry Gabbay, Treasurer
James Kong, Assistant Treasurer
Karen H. Sabath, Secretary

Investment Adviser
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM

Administrator
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, NY 10292

Custodian and Transfer Agent
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 669-1BFM

Auction Agent
Bankers Trust Company
4 Albany Street
New York, NY 10006

Independent Auditors
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom
919 Third Avenue
New York, NY 10022

  The accompanying financial statements as of
June 30, 1996 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 Municipal Target Term Trust Inc.
                   c/o Prudential Mutual Fund Management, Inc.
                                   32nd Floor
                                One Seaport Plaza
                               New York, NY 10292
                                 (800) 227-7BFM

                                                                     09247M 10 5
                                                                     09247M 20 4
                                                                     09247M 30 3
                                                                     09247M 40 2



The BlackRock
Municipal Target
Term Trust Inc.
- -------------------------------------
Semi-Annual Report
June 30, 1996




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