BLACKROCK MUNICIPAL TARGET TERM TRUST INC, N-30D, 1998-08-26

BLACKROCK MUNICIPAL TARGET TERM TRUST INC
N-30D, 1998-08-26

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THE BLACKROCK MUNICIPAL TARGET TERMTRUSTINC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------

July 31, 1998

Dear Shareholder:

Domestic bonds provided investors with modest total returns during the
past six months, as interest rates generally fell. Supporting the bond market
was favorable inflation news and the belief that the Federal Reserve is unlikely
to raise short-term interest rates in the immediate future.

U.S. economic growth has slowed of late after a robust first quarter of
1998. We expect the fallout from the Asian fiscal crisis to quash any
significant rebound in U.S. growth for the remainder of the year. While we
expect that interest rates will be fairly stable in the near-term, our
longer-term outlook for the bond market remains optimistic, based on the
fundamentally favorable backdrop of low inflation, a currently high level of
real yields, and declining Treasury borrowing.

As you may know, the five investment management firms that comprised the
PNC Asset Management Group have consolidated under BlackRock, resulting in
BlackRock Inc., a $119 billion money management firm. We look forward to using
our global investment management expertise to present exciting investment
opportunities to closed-end fund shareholders in the future.

This report contains comments from your Trust's managers regarding the
markets and portfolio in addition to the Trust's financial statements and a
detailed portfolio listing. We thank you for your continued investment in the
Trust.

Sincerely,

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

<PAGE>
July 31, 1998

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,
1998. We would like to take this opportunity to review the Trust's stock price
and net asset value (NAV) performance, summarize developments in the fixed
income markets and discuss recent portfolio management activity.

The Trust is a diversified, actively managed closed-end bond fund whose
shares are traded on the New York Stock Exchange under the symbol "BMN". The
Trust's 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 changes in the Trust's stock price and net
asset value over the period:

- --------------------------------------------------------------------------------
6/30/98 12/31/97 CHANGE HIGH LOW
- --------------------------------------------------------------------------------
STOCK PRICE $10.6875 $11.00 (2.84%) $11.3750 $10.3125
- --------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $11.12 $11.22 0.89% $11.33 $11.04
- --------------------------------------------------------------------------------

THE FIXED INCOME MARKETS

After an extremely strong first quarter of 1998, U.S. economic growth
slowed during the past three months. Despite the strong economic growth of the
past year, inflation stayed surprisingly subdued. One explanation for the
absence of inflation in the U.S. economy stems from the aftermath of the Asian
financial crisis. U.S. exports to Asia have slowed, while the strength of the
dollar caused cheap Asian imports to flood the U.S. market and exert downward
price pressure on domestic goods.

Yields of U.S. Treasury securities have remained in a fairly narrow range
during the period. For example, the yield of the 10-Year Treasury posted a net
decline of 29 basis points (0.29%), beginning 1998 at 5.74% and closing on June
30, 1998 at 5.45%. The past six months represented a continuation of strong
Treasury performance, which has been due to moderating economic growth, low
inflation and a "flight to quality" from investors seeking a safe haven in U.S.
Treasury securities. Continued expectations that the Asian crisis will slow
economic growth and force the Fed to leave the Federal funds rate unchanged
provided additional support to the bond market. With Treasury supply waning due
to a surplus in the federal budget and an increased foreign demand for
Treasuries due to their U.S. government backing and relatively attractive
yields, we anticipate a positive environment for Treasuries for the balance of
1998.

Municipal bonds underperformed the taxable domestic bond market during the
past six months, returning 2.69% (as measured by the LEHMAN BROTHERS MUNICIPAL
INDEX) versus the LEHMAN BROTHERS AGGREGATE INDEX'S 3.91% on a pre-tax basis.
The main forces behind municipal bond underperformance were increased municipal
bond supply (fueled by the lowest municipal interest rates since the 1960s)
and retail investor focus on the equity markets. We believe that municipals

<PAGE>

are attractively valued versus Treasuries and our outlook for municipal
securities is favorable. The credit quality of most issuers remains strong, and
we expect that the attractive taxable equivalent yields offered by municipal
securities should bring investors back into the market.

THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY

The Trust's portfolio is actively managed to diversify exposure to various
sectors, issuers, revenue sources and security types. BlackRock's investment
strategy emphasizes a relative value approach, which allows the Trust to
capitalize upon changing market conditions by rotating municipal sectors,
credits and coupons. Additionally, the Trust emphasizes securities whose
maturity dates match the termination date of the Trust. We have continued to
minimize trading activity in the Trust during the period, as the market prices
of a significant portion of the portfolio's bonds are currently above the prices
at which they were bought. A bond sold at a gain would result in the Trust
realizing a capital gain, which may require a taxable distribution to
shareholders. Since one of the Trust's primary investment objectives is to pay
out TAX-EXEMPT income, we believe that waiting to restructure the portfolio in a
higher interest rate environment remains the most prudent strategy.

The following chart compares the Trust's current and December 31, 1997
asset composition:

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THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
- --------------------------------------------------------------------------------
SECTOR JUNE 30, 1998 DECEMBER 31, 1997
- --------------------------------------------------------------------------------
City, County and State 22% 21%
- --------------------------------------------------------------------------------
Hospital 15% 15%
- --------------------------------------------------------------------------------
Transportation 14% 14%
- --------------------------------------------------------------------------------
Tax Revenue 14% 14%
- --------------------------------------------------------------------------------
Water & Sewer 11% 11%
- --------------------------------------------------------------------------------
Utility/Power 8% 8%
- --------------------------------------------------------------------------------
Lease Revenue 8% 8%
- --------------------------------------------------------------------------------
Education 5% 5%
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Other 3% 3%
- --------------------------------------------------------------------------------
Pollution Control/Resource Recovery -- 1%
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Additionally, the Trust employs leverage to enhance its income by paying
the Trust's preferred shareholders short-term municipal rates and investing the
proceeds in longer maturity issues which have higher yields. The Trust's ability
to pay high monthly income may be affected by the profitability of its leverage.
The Federal Reserve's neutral interest rate policy has allowed the Trust's
leverage costs to remain reasonable. At the present, we believe that leverage
will continue to positively contribute to the Trust's long-term income earning
ability.

<PAGE>

We look forward to managing the Trust to benefit from the opportunities
available in the fixed income markets and to meet its investment objectives. We
thank you for your investment in the BlackRock Municipal Target Term Trust Inc.
Please feel free to contact our marketing center at (800) 227-7BFM (7236) if you
have specific questions which were not addressed in this report.

Sincerely,

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

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BMN
- --------------------------------------------------------------------------------
Initial Offering Date: September 27, 1991
- --------------------------------------------------------------------------------
Closing Stock Price as of 6/30/98: $10.6875
- --------------------------------------------------------------------------------
Net Asset Value as of 6/30/98: $11.12
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 6/30/98 ($10.6875)1: 5.75%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Common Share2: $ 0.05125
- --------------------------------------------------------------------------------
Current Annualized Distribution per Common Share2: $ 0.615
- --------------------------------------------------------------------------------

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

<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
PORTFOLIO OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS--142.3%
ALABAMA--1.0%
Hoover Brd. of Ed. Spl. Tax. Wts., G.O., AMBAC,
AAA $1,700 6.50%, 2/01/01 .................................................. N/A $ 1,831,274
AAA 1,815 6.60%, 2/01/01 .................................................. N/A 1,959,528
AAA 1,025 6.625%, 2/01/01 ................................................. N/A 1,107,246
-----------
4,898,048
-----------
ALASKA--3.9%
AAA 7,500 Anchorage Elec. Util. Rev., 7.125%, 6/01/06, MBIA .................. 6/99 at 102 7,843,875
AAA 4,845 Fairbanks Mun. Util. Auth. Rev., Ser. A, 7.10%, 1/01/99 , AMBAC .... N/A 5,009,391
AAA 9,000 No. Slope Boro., Ser. B, Zero Coupon, 6/30/04, FSA ................. No Opt. Call 6,864,660
-----------
19,717,926
-----------
ARIZONA--1.1%
Tucson Bus. Dev. Fin. Corp. Lease Rev., FGIC,
AAA 1,515 6.25%, 7/01/06 .................................................. 7/02 at 102 1,661,182
AAA 3,495 6.25%, 7/01/06 .................................................. 7/02 at 102 3,790,433
-----------
5,451,615
-----------
CALIFORNIA--5.0%
AAA 6,000 California St., G.O., 6.30%, 9/01/06, AMBAC ........................ No Opt. Call 6,810,000
AAA 1,910 California St. Pub. Wrks. Rev., Ser. A, 6.20%, 12/01/06, AMBAC ..... 12/02 at 102 2,083,332
AAA 4,000 Glendale Hosp. Rev., Adventist Hlth. Ctr., Ser. A, 6.50%,
3/01/07, MBIA ................................................... 3/01 at 102 4,294,800
Los Angeles Wst. Wtr. Sys. Rev., MBIA,
AAA 5,570 5.625%, 6/01/07 ................................................. 6/03 at 102 5,950,709
AAA 3,320 SER. D, 6.60%, 12/01/00 ......................................... N/A 3,584,040
AAA 3,500 San Joaquin Hills Tran., Agcy. Toll Rd. Rev., Ser. A,
Zero Coupon, 1/15/07, MBIA ...................................... No Opt. Call 2,380,665
-----------
25,103,546
-----------
COLORADO--1.9%
Denver City & Cnty. Wtr. Brd. Rev., C.O.P., FGIC,
AAA 3,410 6.50%, 11/15/05 ................................................. 11/01 at 101 3,670,490
AAA 1,875 6.60%, 11/15/06 ................................................. 11/01 at 101 2,024,025
AAA 3,865 6.625%, 11/15/07 ................................................ 11/01 at 101 4,175,166
-----------
9,869,681
-----------
DISTRICT OF COLUMBIA--1.8%
AAA 8,250 District of Columbia, G.O., Ser. B, 5.90%, 6/01/06, MBIA ........... 6/04 at 102 8,926,170
-----------

FLORIDA--12.2%
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 7,535,430
AAA 6,975 6.75%, 7/01/01 , AMBAC .......................................... N/A 7,633,719
AAA 2,190 Florida St. Sunshine Skyway Rev., 6.60%, 7/01/07, MBIA ............. 7/01 at 101 2,369,908
Greater Orlando Aviation Auth., Arpt. Fac. Rev., Ser. B, FGIC,
AAA 4,760 6.55%, 10/01/06 ................................................. 10/02 at 102 5,305,639
AAA 5,070 6.55%, 10/01/07 ................................................. 10/02 at 102 5,642,707
AAA 3,155 Gulf Breeze Local Gov't. Ln. Pkg. Rev., 7.70%, 12/01/15, FGIC ...... 12/99 at 102 3,310,321
AAA 2,650 Jacksonville Hlth. Fac. Auth. Rev., Mem. Med. Ctr.,
Ser. A, 6.625%, 11/01/01 , MBIA ................................. N/A 2,880,921
AAA 7,500 Jacksonville Hosp. Rev., Univ. Med. Ctr. Inc. Proj., 6.50%,
2/01/07, CONNIE LEE ............................................. 2/02 at 102 8,159,775
AAA 2,000 No. Broward Hosp. Rev., 6.50%, 1/01/02 , MBIA ...................... N/A 2,191,200

See Notes to Financial Statements.

</TABLE>

<PAGE>

- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA (CONT'D)
AAA $10,645 ORANGE CNTY., TOURIST DEV. TAX REV., SER. A, 6.375%, 10/01/06, AMBAC ......... 10/02 AT 102 $11,771,135
AAA 2,570 Tampa Auth. Rev., St. Joseph Hlth. Ctr., 6.70%, 12/01/01 , MBIA .............. N/A 2,833,502
AAA 1,600 Tampa Util. Tax & Spec. Rev., 6.80%, 10/01/06, AMBAC ......................... 10/01 at 102 1,757,392
-----------
61,391,649
-----------
GEORGIA--0.4%
AAA 1,990 Burke Cnty. Dev. Auth. P.C.R., Oglethorpe Pwr. Corp., Ser. B, 6.45%,
1/01/01, MBIA ................................................................ 1/04 at 101 2,188,483
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ILLINOIS--14.8%
AAA 4,930 Alton Hlth. Fac. Rev., Christian Hlth. Ctr., 7.00%, 2/15/01 , FGIC ........... N/A 5,375,080
Chicago Cent. Pub. Library, G.O., AMBAC,
AAA 1,800 Ser. A, 6.75%, 1/01/07 .................................................... 4/02 at 102 1,993,140
AAA 1,600 Ser. C, 6.75%, 1/01/07 .................................................... 4/02 at 102 1,771,680
AAA 5,555 Cook Cnty., Ser. A, 6.40%, 11/15/02 , MBIA ................................... N/A 6,148,218
AAA 1,775 Cook Cnty. Cmnty. Sch. Dist., G.O., Ser. A, 6.375%, 1/01/02 , FGIC ........... N/A 1,903,723
lllinois Hlth. Fac. Auth. Rev.,
AAA 3,300 Elmhurst Mem. Hosp., 6.60%, 1/01/07, FGIC ................................. 1/02 at 102 3,587,826
AAA 14,585 Sisters Svcs., Inc., Ser. C, 6.625%, 6/01/06, MBIA ........................ 6/02 at 102 16,032,124
Illinois Regl. Trans. Auth. Rev., Ser. A, FGIC,
AAA 2,780 6.55%, 11/01/01 ........................................................... N/A 3,042,293
AAA 6,125 6.625%, 11/01/01 .......................................................... N/A 6,717,043
AAA 8,725 Illinois St., G.O., 6.40%, 12/15/07, AMBAC ................................... 12/01 at 102 9,529,270
Illinois St. Sales Tax Rev., Ser. O,
AAA 5,900 ZERO COUPON, 6/15/07 NO OPT. CALL 3,962,676
AAA 5,635 Zero Coupon, 6/15/08 ...................................................... No Opt. Call 3,592,256
AAA 2,065 6.50%, 6/15/01 ............................................................ N/A 2,240,608
AAA 3,935 6.50%, 6/15/06 ............................................................ 6/02 at 101 4,266,209
AAA 2,000 6.60%, 6/15/01 ............................................................ N/A 2,175,580
AAA 2,000 Will Cnty. Cmnty. Sch. Dist. Rev., 7.05%, 12/01/08, AMBAC .................... No Opt. Call 2,400,720
----------
74,738,446
----------
INDIANA--2.8%
AAA 9,000 Indiana Univ. Rev., Student Fee, Zero Coupon, 8/01/06, AMBAC ................. No Opt. Call 6,209,280
AAA 2,270 Noblesville West Indpt. Sch. Bldg. Corp., G.O., 7.00%, 7/01/07, MBIA ......... 1/01 at 102 2,451,623
AAA 5,000 Warsaw High Sch. Bldg. Corp., G.O., 6.90%, 7/01/05, MBIA ..................... 7/00 at 102 5,335,800
----------
13,996,703
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KENTUCKY--3.1%
Danville Multi-City Lease Rev., Swr. & Drain Sys., MBIA,
AAA 2,015 6.60%, 3/01/02 ............................................................ N/A 2,217,427
AAA 2,160 6.65%, 3/01/02 ............................................................ N/A 2,380,622
AAA 3,750 Kentucky Dev. Fin. Auth. Rev., Sisters of Charity, 6.60%, 11/01/06, MBIA ..... 11/01 at 10 4,076,550
AAA 6,410 Kentucky St. Ppty. & Bldgs. Auth. Rev., Proj. 53, 6.625%, 10/01/07, MBIA ..... 10/01 at 102 6,985,234
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15,659,833
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LOUISIANA--6.9%
Jefferson Sales Tax Dist. Rev., FGIC,
AAA 21,000 Ser. A, 6.75%, 12/01/06 ................................................... 12/02 at 100 23,051,700
AAA 4,000 Ser. B, 6.75%, 12/01/06 ................................................... 12/02 at 100 4,402,520
AAA 3,500 Louisiana St., G.O., Ser. A, 6.50%, 5/01/07, AMBAC ........................... 5/02 at 102 3,844,715
AAA 5,250 NEW ORLEANS, G.O., ZERO COUPON, 9/01/06, AMBAC NO OPT. CALL 3,614,047
----------
34,912,982
----------
</TABLE>
See Notes to Financial Statements.

6
<PAGE>

NEVADA--5.3%
AAA 6,210 Clark Cnty. Flood Ctrl., G.O., 6.40%, 11/01/01 , AMBAC ....................... N/A 6,712,886
Clark Cnty. Sch. Dist., G.O., Ser. A, MBIA,
AAA 11,000 6.70%, 3/01/06 ............................................................ 3/01 at 101 11,786,940
AAA 1,500 6.75%, 3/01/07 ............................................................ 3/01 at 101 1,607,610
AAA 2,835 Nye Cnty. Sch. Dist., G.O., BIGI, 7.25%, 5/01/99 ............................. N/A 2,971,477
AAA 3,250 Reno Hosp. Auth. Rev., St. Mary Regl. Med. Ctr., 6.70%, 7/01/01 , MBIA N/A 3,547,570
----------
26,626,483
----------
NEW HAMPSHIRE--0.5%
AAA 2,310 New Hampshire High. Ed. Auth. Rev., Elliot Hosp. of Manchester,
6.70%, 10/01/06, AMBAC .................................................... 10/02 at 102 2,507,805
----------

NEW JERSEY--15.8%
AAA 10,500 Elizabeth, G.O., 6.60%, 8/01/06, MBIA ........................................ 8/01 at 102 11,374,545
Howell Twp., G.O., FGIC,
AAA 7,715 6.70%, 1/01/06 ............................................................ 1/02 at 102 8,473,153
AAA 2,925 6.75%, 1/01/07 ............................................................ 1/02 at 102 3,213,112
New Jersey St. Hlth. Care Fac. Fin. Auth. Rev., Hackensack Med. Ctr., FGIC,
AAA 12,755 6.65%, 7/01/06 ............................................................ 7/01 at 102 13,807,415
AAA 3,735 6.70%, 7/01/07 ............................................................ 7/01 at 102 4,042,876
AAA 1,765 New Jersey St. Hwy. Auth. Rev., Garden St. Pkwy., 6.15%, 1/01/07, AMBAC ...... 1/02 at 102 1,890,562
AAA 30,000 New Jersey St. Tpk. Auth. Rev., Ser. C, 6.40%, 1/01/07, AMBAC 1/01 at 101.5 31,867,500
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 2,738,918
AAA 1,065 Wanaque So. Proj., 6.50%, 7/01/06 ......................................... No Opt. Call 1,188,572
AAA 1,250 Warren Cnty. Fin. Auth., P.C.R., 6.55%, 12/01/06, MBIA ....................... 12/02 at 102 1,374,988
----------
79,971,641
----------
NEW MEXICO--0.8%
AAA 3,535 Gallup, P.C.R., 6.50%, 8/15/07, MBIA ......................................... 8/02 at 102 3,864,321
----------

</TABLE>
See Notes to Financial Statements.

7
<PAGE>

NORTH DAKOTA--0.4%
AAA 2,035 Grand Forks Hlth. Care Fac. Rev., United Hosp. Oblig. Grp.,
6.50%, 12/01/06, MBIA ..................................................... 12/01 at 102 2,197,617
----------

PENNSYLVANIA--10.2%
AAA 6,200 Beaver Cnty. Hosp. Auth., 6.625%, 7/01/06, AMBAC ............................. 7/02 at 102 6,772,508
AAA 1,500 COATESVILLE SCH. DIST., G.O., 6.60%, 3/01/01 , AMBAC ......................... N/A 1,596,495
AAA 10,000 Harrisburg Auth. Lease Rev., 6.625%, 6/01/01 , FSA ........................... N/A 10,787,000
AAA 7,450 Pennsylvania St., G.O., Ser. A, 6.50%, 11/01/01 , FGIC ....................... N/A 8,108,878
AAA 1,445 Pennsylvania St. Higher Ed. Rev., 6.75%, 7/01/01 , MBIA ...................... N/A 1,581,466
AAA 4,500 Pennsylvania St. Tpk. Auth. Rev., Ser. O, 5.80%, 12/01/07, FGIC .............. 12/02 at 102 4,803,165
Philadelphia Mun. Auth., Justice Lease Rev.,
AAA 1,550 Ser. A, 7.00%, 11/15/04, MBIA ............................................. 11/01 at 102 1,706,844
AAA 2,370 Ser. B, 7.10%, 11/15/01 , FGIC ............................................ N/A 2,636,104
Pittsburgh & Allegheny Cntys. Rev., AMBAC,
AAA 1,015 Ser. A, 6.50%, 7/15/06 .................................................... 7/01 at 100 1,076,803
AAA 900 Ser. B, 6.50%, 7/15/06 .................................................... 7/01 at 100 954,801
AAA 3,000 Schuylkill Cnty. Redev. Auth., Common Lease Rev., Ser. A,
7.00%, 6/01/07, FGIC ...................................................... 6/02 at 101 3,264,810
AAA 7,800 Westmoreland Cnty., G.O., 6.70%, 8/01/01 , AMBAC ............................. N/A 8,390,616
----------
51,679,490
----------
RHODE ISLAND--2.4%
AAA 11,220 Conv. Ctr. Auth. Rev., Ser. A, 6.60%, 5/15/01 , MBIA ......................... N/A 12,184,247
----------

SOUTH CAROLINA--2.0%
AAA 4,390 Piedmont Mun. Pwr. Agy. Elec. Rev., 6.85%, 1/01/07, FGIC ..................... 1/01 at 102 4,723,728
AAA 5,100 ROCK HILL UTIL. SYS. REV., 6.50%, 1/01/07, FGIC .............................. 1/01 AT 102 5,452,308
----------
10,176,036
----------
TENNESSEE--0.5%
AAA 2,350 Met. Nashville, Arpt. Rev., Ser. C, 6.625%, 7/01/07, FGIC .................... 7/01 at 102 2,542,253
----------

TEXAS--15.3%
AAA 2,000 Austin Util. Sys. Rev., 6.875%, 5/15/01 , AMBAC .............................. N/A 2,186,580
AAA 8,500 Cypress-Fairbanks Indpt. Sch. Dist., G.O., Zero Coupon, 8/01/06, AMBAC ....... No Opt. Call 5,906,225
AAA 5,800 El Paso Cnty. Tax Rev., Ser. B, 6.40%, 2/15/07, MBIA ......................... 2/02 at 100 6,178,798
Ft. Bend Cnty., Perm. Imprvt., FGIC,
AAA 1,650 G.O., 6.60%, 9/01/02 ...................................................... N/A 1,804,605
AAA 1,725 Tax Rev., 6.60%, 9/01/02 ..................................................... N/A 1,886,632
TEXAS (CONT'D)
</TABLE>
See Notes to Financial Statements.

<PAGE>

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>

Harris Cnty. Rev., Toll Rd. Sr. Lien, Ser. A, FGIC,
AAA $10,395 6.50%, 8/15/02 ............................................................ N/A $ 11,496,454
AAA 1,955 6.50%, 8/15/06 ............................................................ 8/02 at 102 2,140,217
AAA 3,160 6.50%, 8/15/02 ............................................................ N/A 3,494,834
AAA 590 6.50%, 8/15/07 ............................................................ 8/02 at 102 645,897
Houston Wtr. & Swr. Sys. Rev., Ser. B,
AAA 1,775 6.75%, 12/01/01 , FGIC .................................................... N/A 1,956,795
AAA 13,225 6.75%, 12/01/08, FGIC ........................................................ 12/01 AT 102 14,464,182
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 2,044,286
AAA 1,550 No. Texas Wtr. Dist., 6.40%, 6/01/07, MBIA ................................... 6/03 at 100 1,682,634
AAA 3,000 Round Rock Indpt. Sch. Dist., G.O., 6.75%, 8/15/01 , MBIA .................... N/A 3,234,180
AAA 15,000 Texas Mun. Pwr. Agy. Rev., Zero Coupon, 9/01/06, AMBAC ....................... No Opt. Call 10,367,100
AAA 3,745 Texas St. Bldg. Fin. Auth. Rev., 7.00%, 2/01/01 , MBIA ....................... N/A 4,011,869
AAA 3,395 Tyler Cnty. Hlth. Fac. Dev. Corp. Rev., Mother Francis Hosp.,
6.50%, 7/01/06, FGIC ...................................................... 7/02 at 102 3,715,352
------------
77,216,640
------------
WASHINGTON--4.2%
AAA 1,250 Snohomish Cnty. Pub. Util. Dist., Elec. Rev., 6.55%, 1/01/07, FGIC ........... No Opt. Call 1,430,375
Snohomish Cnty. Sch. Dist., G.O., MBIA,
AAA 3,835 6.70%, 12/01/06 ........................................................... 12/01 at 100 4,140,880
AAA 4,145 6.75%, 12/01/07 ........................................................... 12/01 at 100 4,476,683
Washington St. Pub. Pwr. Sply. Sys. Rev., Nuclear Proj. #2, Ser. A,
AAA 12,875 Zero Coupon, 7/01/06, MBIA ................................................ No Opt. Call 8,937,696
AAA 2,265 6.50%, 7/01/01 , FGIC ..................................................... N/A 2,459,767
------------
21,445,401
------------
WISCONSIN--0.6%
AAA 2,850 Wisconsin Hlth. & Ed. Fac. Auth., Columbia Hosp. Rev.,
6.50%, 11/15/06, MBIA ..................................................... 11/01 at 102 3,097,066
------------

Total Long-Term Investments (cost $657,580,918) .............................. 718,938,612
------------
SHORT-TERM INVESTMENT**--0.2%
A1+ 900 Hillsborough Cnty, Fl. Ind. Dev. Auth., P.C.R., Tampa Electric Co.,
4.10%, 7/01/98, FRDD (COST $900,000) ........................ N/A
900,000
------------
TOTAL INVESTMENTS--142.5% (COST $658,480,918) ................................ 719,838,612
Assets in excess of other liabilities--2.0% .................................. 10,241,297
Liquidation value of preferred stock--(44.5%) (225,000,000)
------------
Net Assets Applicable to Common Shareholders--100% ........................... $505,079,909
============
</TABLE>

- -----------------
+ 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 this
instrument is considered to be the later of the next date on which the
security can be redeemed at par or the next date on which the rate of
interest is adjusted.

<TABLE>
<CAPTION>
=============================================================================================================================
THE FOLLOWING ABBREVIATIONS ARE USED IN THE PORTFOLIO DESCRIPTIONS:
<S> <C> <C> <C>
AMBAC -- American Municipal Bond Assurance Corporation FGIC -- Financial Guaranty Insurance Company
BIGI -- Bond Investors Guaranty Insurance Company FRDD -- Floating Rate Daily Demand
CAPMAC -- Capital Markets Assurance Company FSA -- Financial Security Assurance
CONNIE LEE -- College Construction Loan Insurance Association G.O. -- General Obligation Bond
C.O.P. -- Certificate of Participation MBIA -- Municipal Bond Insurance Association
P.C.R. -- Pollution Control Revenue
=============================================================================================================================
</TABLE>
See Notes to Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------

ASSETS
Investments, at value (cost
$658,480,918) (Note 1) ...................................... $719,838,612
Interest receivable ........................................... 11,506,221
------------
731,344,833
------------
LIABILITIES
Investment advisory fee payable (Note 2) ...................... 210,723
Dividends payable--preferred stock ............................ 203,623
Due to custodian .............................................. 68,231
Administration fee payable (Note 2) ........................... 42,145
Other accrued expenses ........................................ 740,202
------------
1,264,924
------------
NET INVESTMENT ASSETS ......................................... $730,079,909
============
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 ......................... 22,148,724
Net unrealized appreciation ................................. 61,357,694
------------
Net investment assets, June 30, 1998 ........................ $730,079,909
============
Net assets applicable to common
shareholders .............................................. $505,079,909
============
Net asset value per common share:
($505,079,909 / 45,410,639 shares of
common stock issued and outstanding) $11.12
.............................................................. ======

THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned ................................ $21,354,914
-----------
Expenses
Investment advisory ......................................... 1,278,601
Auction agent ............................................... 282,000
Administration .............................................. 255,720
Custodian ................................................... 79,000
Reports to shareholders ..................................... 62,000
Directors ................................................... 42,000
Transfer agent .............................................. 20,000
Audit ....................................................... 18,000
Legal ....................................................... 5,000
Miscellaneous ............................................... 155,673
-----------
Total expenses ............................................ 2,197,994
-----------
NET INVESTMENT INCOME ......................................... 19,156,920
-----------
UNREALIZED LOSS ON
INVESTMENTS (NOTE 3)
Net change in unrealized appreciation
on investments ............................................ (5,840,565)
-----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ........................... $13,316,355
===========

See Notes to Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1998 1997
------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET INVESTMENT ASSETS

OPERATIONS:
Net investment income $19,156,920 $ 38,510,968
Net realized gain on investments -- 181,766
Net change in unrealized appreciation on investments (5,840,565) 9,243,056
------------ ------------
Net increase in net investment assets resulting from operations 13,316,355 47,935,790
------------ ------------
DIVIDENDS AND DISTRIBUTIONS:
To preferred shareholders from net investment income (3,885,490) (8,041,758)
To preferred shareholders from capital gains -- (40,128)
To common shareholders from net investment income (13,963,608) (27,785,620)
To common shareholders from capital gains -- (141,638)
------------ ------------
Total dividends and distributions (17,849,098) (36,009,144)
------------ ------------
Total increase (decrease) (4,532,743) 11,926,646
------------ ------------
NET INVESTMENT ASSETS
Beginning of period 734,612,652 722,686,006
------------ ------------
End of period $730,079,909 $734,612,652
============ ============

See Notes to Financial Statements.

</TABLE>

<PAGE>

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

SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ----------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 1998 1997 1996 1995 1994 1993
--------- -------- -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.22 $ 10.96 $ 11.14 $ 9.98 $ 11.30 $ 10.04
-------- -------- -------- ------- -------- --------
Net investment income 0.42 0.85 0.84 0.87 0.83 0.82
Net realized and unrealized gain (loss)
on investments (0.13) 0.20 (0.24) 1.14 (1.39) 1.17
-------- -------- -------- ------- -------- --------
Net increase (decrease) from investment operations 0.29 1.05 0.60 2.01 (0.56) 1.99
-------- -------- -------- ------- -------- --------
Dividends from net investment income to:
Preferred shareholders (0.08) (0.18) (0.17) (0.19) (0.14) (0.12)
Common shareholders (0.31) (0.61) (0.61) (0.62) (0.62) (0.61)
Distributions from capital gains to:
Preferred shareholders -- * * (0.01) -- --
Common shareholders -- * * (0.03) -- --

-------- -------- -------- -------- -------- --------
Total dividends and distributions (0.39) (0.79) (0.78) (0.85) (0.76) (0.73)
-------- -------- -------- -------- -------- --------
Net asset value, end of period** $ 11.12 $ 11.22 $ 10.96 $ 11.14 $ 9.98 $ 11.30
======== ======== ======== ======== ======== ========
Market value, end of period** $ 10.69 $ 11.00 $ 10.25 $ 10.13 $ 8.88 $ 10.38
======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN: (0.03%) 13.69% 7.43% 21.67% (8.89%) 10.01%
======== ======== ======== ======== ======== ========

RATIOS TO AVERAGE NET ASSETS OF
COMMONSHAREHOLDERS:
Expenses 0.87% 0.88% 0.91% 0.90% 0.94% 0.87%
Net investment income before preferred stock dividends 7.61% 7.70% 7.75% 8.06% 7.91% 7.61%
Preferred stock dividends 1.54% 1.61% 1.59% 1.83% 1.38% 1.11%
Net investment income available to common stockholders 6.07% 6.09% 6.16% 6.23% 6.53% 6.50%

SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) $507,309 $500,227 $494,667 $487,923 $475,529 $492,138
Portfolio turnover rate 0% 8% 5% 9% 21% 1%
NET ASSETS OF COMMON SHAREHOLDERS, END OF PERIOD
(in thousands) $505,080 $509,613 $497,686 $506,060 $453,407 $513,339
Asset coverage per share of preferred stock, end of period# $ 81,143 $ 81,640 $ 80,298 $ 81,243 $150,783 $164,075
Preferred stock outstanding (in thousands) $225,000 $225,000 $225,000 $225,000 $225,000 $225,000

</TABLE>

- --------------
* Actual amount paid for the year ended December 31, 1997 to preferred
shareholders was $0.0008 and to common shareholders was $0.0031 and for the
year ended December 31, 1996 to preferred shareholders was $.0007 and to
common shareholders was $.0024.
** Net asset value and market value are published in THE WALL STREET JOURNAL
each Monday.
# A stock split occurred 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 returns for periods of less
than a full year are not annualized.
++ Ratios calculated on the basis of income and expenses applicable to both
the common and preferred shares, and preferred stock dividends, relative to
the average net assets of common shareholders.
+++ Annualized.
The information above represents the unaudited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data, for each of the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common stock.

See Notes to Financial Statements.

12
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL
TARGET TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------

NOTE 1. ORGANIZATION & The BlackRock Munici-
ACCOUNTING pal Target Term Trust
POLICIES Inc.(the "Trust"), was
organized in Maryland
on July 16, 1991 as a diversified, closed-end management investment company. The
Trust's investment objective is to manage a diversified portfolio of high
quality 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.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust 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 and
distributions to common shareholders monthly from net investment income, net
realized short-term capital gains and other sources, if necessary. Net long-term
capital gains, if any, in excess of loss carryforwards may be distributed
annually. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.

ESTIMATES: The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

RECLASSIFICATION OF CAPITAL ACCOUNTS: The Trust accounts for and reports
distributions to shareholders in accordance with the American Institute of
Certified Public Accountants' Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income,Capital Gain and
Return ofCapital Distributions by Investment Companies. The effect of applying
this statement was to increase undistributed net investment income and decrease
accumulated net realized gain by $3,044 compared to amounts previously reported.
Net investment income, net realized gains and net assets were not affected by
this change.

NOTE 2. AGREEMENTS The Trust has an Investment
Advisory Agreement with
BlackRock Financial Management, Inc. (the "Adviser") a wholly-owned corporate
subsidiary of BlackRock Advisors,Inc., which is an indirect majority-owned
subsidiary of PNC Bank, N.A., and an Administration Agreement with Prudential
Investments Fund Management LLC ("PIFM"), 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 PIFM is also computed weekly and payable monthly at an annual rate of 0.07%
of the Trust's average weekly net investment assets.

13
<PAGE>

Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. PIFM pays occupancy and certain clerical
and accounting costs of the Trust. The Trust bears all other costs and expenses.

NOTE 3. PORTFOLIO Sales of investment securities,
SECURITIES other than short-term invest-
ments for the six months
ended June 30, 1998 aggregated $170,000. There were no purchases, other than
short-term investments, during the six months ended June 30, 1998.

The federal income tax basis of the Trust's investments at June 30, 1998 was
substantially the same as the basis for financial reporting purposes and,
accordingly, gross and net unrealized appreciation for federal income tax
purposes was $61,357,694.

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,
1998, the Adviser owned 10,639 shares. As of June 30, 1998, 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 2.80% to 4.40% during the six months
ended June 30, 1998.

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 plus any 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
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.

NOTE 5. DIVIDENDS Subsequent to June 30,
1998, the Board of Directors
of the Trust declared dividends from undistributed earnings of $0.05125 per
common share payable July 31, 1998 to shareholders of record on July 15, 1998.

For the period July 1, 1998 to July 31, 1998 dividends and distributions
declared on preferred shares totalled $830,472 in aggregate for the three
outstanding preferred share series.

14
<PAGE>

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

- --------------------------------------------------------------------------------
ADDITIONALINFORMATION
- --------------------------------------------------------------------------------

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 6, 1998 to vote on
the following matters:

<TABLE>
<CAPTION>
(1) To elect three Directors to serve as follows:
DIRECTOR CLASS TERM EXPIRING
------- ----- ----- -------
<S> <C> <C> <C>
Andrew F.Brimmer ...................................... III 3 years 2001
Kent Dixon ............................................ III 3 years 2001
Laurence D. Fink ...................................... III 3 years 2001

Directors whose term of office continues beyond this meeting are Frank J. Fabozzi, Ralph L.Schlosstein,
Walter F. Mondale, Richard E. Cavanagh, James Grosfeld, and James Clayburn La Force, Jr.

(2) To ratify the selection of Deloitte & Touche LLP as independent public accountants of the Trust for the
fiscal year ending December 31, 1998. Shareholders elected the three Directors and ratified the selection
of Deloitte & Touche LLP. The results of the voting was as follows:

</TABLE>
<TABLE>
<CAPTION>
VOTES FOR VOTES AGAINST ABSTENTIONS
-------- ----------- ----------
<S> <C> <C> <C>
Andrew F.Brimmer ...................................... 38,909,840 0 453,546
Kent Dixon ............................................ 38,949,417 0 413,969
Laurence D.Fink ....................................... 38,946,100 0 417,286
Ratification of Deloitte & Touche LLP ................. 38,679,548 202,561 481,277

</TABLE>

15
<PAGE>

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

THE TRUST'S INVESTMENT OBJECTIVE
The BlackRock Municipal Target Term Trust Inc.'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") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $119
billion on behalf of taxable and tax-exempt clients worldwide. Strategies
include fixed income, equity and cash and may incorporate both domestic and
international securities. Domestic fixed income strategies utilize the
government, mortgage, corporate and municipal bond sectors.BlackRock manages
twenty-one closed-end funds that are traded on either the New York or American
stock exchanges, and a $23 billion family of open-end equity and bond funds.
Current institutional clients number 334, domiciled in the United States and
overseas.

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
Trust's assets are invested in securities which have maturities that are similar
to the maturity date of the Trust. 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 total assets) to enhance
the income of the portfolio. In order to maintain competitive yields as the
Trust approaches maturity and depending on market conditions, the Adviser will
attempt to purchase securities with call protection or maturities as close to
the Trust's maturity date as possible. Securities with call protection should
provide the portfolio with some degree of protection against reinvestment risk
during times of lower prevailing interest rates. Since the Trust's primary goal
is to return the initial offering price at maturity, any cash that the Trust
receives prior to its maturity date 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.

<PAGE>

HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS
REGULARLY? The Trust's shares are traded on the New York Stock Exchange which
provides investors with liquidity on a daily basis. Orders to buy or sell shares
of the Trust must be placed through a registered broker or financial advisor.
The Trust pays monthly dividends which are typically paid on the last business
day of the month. For shares held in the shareholder's name, dividends may be
reinvested in additional shares of the Trust 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 Trust 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.

<PAGE>

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

<TABLE>
<CAPTION>
<S> <C>
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 to
common shareholders on a monthly basis.

DIVIDEND REINVESTMENT: Shareholders may have all dividends and
distributions of capital gains automatically
reinvested into additional shares of the Trust.

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 on Saturday and THE NEW
YORK TIMES 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.

</TABLE>

<PAGE>

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BLACKROCK FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- -------------------------------------------------------------------------------------------------

TAXABLE TRUSTS
- -------------------------------------------------------------------------------------------------

STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ------
<S> <C> <C>
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
</TABLE>

<TABLE>
<CAPTION>
TAX-EXEMPT TRUSTS
- -------------------------------------------------------------------------------------------------

STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ------
<S> <C> <C>
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
</TABLE>

IF YOU WOULD LIKE FURTHER INFORMATION
PLEASE CALL BLACKROCK AT (800) 227-7BFM (7236)
OR CONSULT WITH YOUR FINANCIAL ADVISOR.

BlackRock
DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein

OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin Klingert, VICE PRESIDENT/TAX
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 Investments Fund Management LLC
Gateway Center 3
100 Mulberry Street
Newark, NJ07102-4077

CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM

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 LLP
919 Third Avenue
New York, NY 10022

The accompanying financial statements as of June 30, 1998, 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 Investments Fund Management LLC
Gateway Center 3
100 Mulberry Street
Newark, NJ07102-4077

092476-10-5
092476-20-4
092476-30-3
092476-40-2

[Logo] Printed on recycled paper

THE BLACKROCK
MUNICIPAL TARGET
TERM TRUST INC.
========================================
SEMI-ANNUAL REPORT
JUNE 30, 1998