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<PAGE> PAGE 4
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SIGNATURE THOMAS J. VINCE
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000890336
<NAME> HYPERION 1997 TERM TRUST
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1995
<PERIOD-END> MAY-31-1995
<INVESTMENTS-AT-COST> 711,209,750
<INVESTMENTS-AT-VALUE> 724,407,973
<RECEIVABLES> 12,961,502
<ASSETS-OTHER> 379,417
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 737,748,892
<PAYABLE-FOR-SECURITIES> 17,936,621
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 219,523,152
<TOTAL-LIABILITIES> 237,459,773
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 574,414,295
<SHARES-COMMON-STOCK> 60,555,227
<SHARES-COMMON-PRIOR> 60,555,227
<ACCUMULATED-NII-CURRENT> 8,152,571
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (90,727,816)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8,450,069
<NET-ASSETS> 500,289,119
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 53,158,758
<OTHER-INCOME> 0
<EXPENSES-NET> 15,490,516
<NET-INVESTMENT-INCOME> 37,668,242
<REALIZED-GAINS-CURRENT> 402,244
<APPREC-INCREASE-CURRENT> 6,082,810
<NET-CHANGE-FROM-OPS> 44,153,296
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (35,073,708)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (93,016)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 8,986,572
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 5,558,037
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 674,050
<INTEREST-EXPENSE> 11,300,892
<GROSS-EXPENSE> 15,490,516
<AVERAGE-NET-ASSETS> 488,792,000
<PER-SHARE-NAV-BEGIN> 8.11
<PER-SHARE-NII> 0.62
<PER-SHARE-GAIN-APPREC> 0.11
<PER-SHARE-DIVIDEND> (0.58)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 8.26
<EXPENSE-RATIO> 0.86
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
July 19, 1995
Suzanne Washburn
Boston Financial Data Services
2 Heritage Drive
North Quincy, MA 02171
Dear Suzanne:
As follow-up to our phone conversation earlier today, I have attached for
your records a copy of the page of the prospectus for Hyperion 1997, which
shows authorized shares to be 100,000,000.
If I can be of further assistance, please let me know.
Yours truly,
Joan Callaghan
Vice President
July 27, 1995
To the Board of Directors
Hyperion 1997 Term Trust, Inc.
In planning and performing our audit of the financial statements of Hyperion
1997 Term Trust, Inc. (The "Trust") for the year ended May 31, 1995, we
considered its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purposes of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, and not to provide assurance on the internal control
structure.
The management of the Trust is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
cost of internal control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are appropriately
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and may not be detected. Also, projections of any
evaluation of the structure to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce
to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
May 31, 1995.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
PRICE WATERHOUSE LLP
