<PAGE> PAGE 1
000 B000000 05/31/97
000 C000000 0000890336
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 HYPERION 1997 TERM TRUST, INC.
001 B000000 811-07072
001 C000000 2125498400
002 A000000 ONE LIBERTY PLAZA,165 BROADWAY, 36 FLOOR
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10006
002 D020000 1404
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
007 C012100 21
007 C012200 22
007 C012300 23
007 C012400 24
007 C012500 25
007 C012600 26
007 C012700 27
007 C012800 28
<PAGE> PAGE 2
007 C012900 29
007 C013000 30
007 C013100 31
007 C013200 32
007 C013300 33
007 C013400 34
007 C013500 35
007 C013600 36
007 C013700 37
007 C013800 38
007 C013900 39
007 C014000 40
008 A000001 HYPERION CAPITAL MANAGEMENT, INC.
008 B000001 A
008 C000001 801-34605
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10006
008 D040001 1404
010 A000001 HYPERION CAPITAL MANAGEMENT, INC.
010 B000001 801-34605
010 C010001 NEW YORK
010 C020001 NY
010 C030001 10006
010 C040001 1404
011 A000001 PRUDENTIAL SECURITIES INCORPORATED
011 B000001 8-27154
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10292
011 A000002 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
011 B000002 8-7221
011 C010002 NEW YORK
011 C020002 NY
011 C030002 10281
011 A000003 OPPENHEIMER & CO., INC.
011 B000003 8-18333
011 C010003 NEW YORK
011 C020003 NY
011 C030003 10281
011 A000004 PAINE WEBBER INCORPORATED
011 B000004 8-16267
011 C010004 NEW YORK
011 C020004 NY
011 C030004 10019
011 A000005 SMITH BARNEY, HARRIS UPHAM & CO., INC.
011 B000005 8-8177
011 C010005 NEW YORK
011 C020005 NY
011 C030005 10019
011 A000006 ADVEST, INC.
<PAGE> PAGE 3
011 B000006 8-21409
011 C010006 HARTFORD
011 C020006 CT
011 C030006 06103
011 A000007 CROWELL, WEEDEN & CO.
011 B000007 8-3710
011 C010007 LOS ANGELES
011 C020007 CA
011 C030007 90017
011 A000008 DAIN BOSWORTH INCORPORATED
011 B000008 8-3259
011 C010008 MINNEAPOLIS
011 C020008 MN
011 C030008 55402
012 A000001 BOSTON EQUISERVE, LIMITED PARTNERSHIP
012 B000001 85-00
012 C010001 CANTON
012 C020001 MA
012 C030001 02021
013 A000001 PRICE WATERHOUSE LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10036
014 A000001 HYPERION DISTRIBUTORS, INC.
014 B000001 8-46861
014 A000002 RANIERI & CO., INC.
014 B000002 8-39678
015 A000001 STATE STREET BANK & TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02116
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 10
019 C000000 HYPERIONXX
020 A000001 PAINE WEBBER INCORPORATED
020 B000001 13-2638166
020 C000001 8
020 A000002 CS FIRST BOSTON CORPORATION
020 B000002 13-5659485
020 C000002 4
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
<PAGE> PAGE 4
021 000000 12
022 A000001 STATE STREET BANK & TRUST COMPANY
022 B000001 04-1867445
022 C000001 477314
022 D000001 0
022 A000002 BEAR STEARNS SECURITIES CORPORATION
022 B000002 13-3299429
022 C000002 297723
022 D000002 115022
022 A000003 UBS SECURITIES, INC.
022 B000003 13-2932996
022 C000003 229400
022 D000003 0
022 A000004 MERRILL LYNCH PIERCE FENNER & SMITH, INC.
022 B000004 13-5674085
022 C000004 98496
022 D000004 73815
022 A000005 SMITH BARNEY, INC.
022 B000005 13-1912900
022 C000005 13486
022 D000005 87569
022 A000006 LEHMAN BROTHERS, INC.
022 B000006 13-2518466
022 C000006 29958
022 D000006 47327
022 A000007 PAINE WEBBER INCORPORATED
022 B000007 13-2638166
022 C000007 0
022 D000007 58772
022 A000008 CS FIRST BOSTON CORPORATION
022 B000008 13-5659485
022 C000008 0
022 D000008 35300
022 A000009 SALOMON BROTHERS INC
022 B000009 13-3082694
022 C000009 0
022 D000009 27366
022 A000010 GOLDMAN SACHS & CO.
022 B000010 13-5108880
022 C000010 3800
022 D000010 14938
023 C000000 1159540
023 D000000 466852
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
<PAGE> PAGE 5
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 0
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 0
028 H000000 0
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
035 000000 0
036 B000000 0
038 000000 0
042 A000000 0
<PAGE> PAGE 6
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.200
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
<PAGE> PAGE 7
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 0
062 A000000 Y
062 B000000 127.0
062 C000000 8.4
062 D000000 0.2
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 1.5
062 N000000 3.8
062 O000000 0.2
062 P000000 0.0
062 Q000000 2.1
062 R000000 0.0
063 A000000 0
063 B000000 1.2
064 A000000 Y
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 N
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 Y
<PAGE> PAGE 8
070 E020000 Y
070 F010000 N
070 F020000 N
070 G010000 Y
070 G020000 Y
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 Y
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 439664
071 B000000 433919
071 C000000 345395
071 D000000 126
072 A000000 12
072 B000000 38078
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 1003
072 G000000 596
072 H000000 0
072 I000000 39
072 J000000 87
072 K000000 0
072 L000000 119
072 M000000 51
072 N000000 21
072 O000000 0
072 P000000 9774
072 Q000000 0
072 R000000 76
072 S000000 777
072 T000000 0
<PAGE> PAGE 9
072 U000000 18
072 V000000 0
072 W000000 285
072 X000000 12846
072 Y000000 0
072 Z000000 25232
072AA000000 4240
072BB000000 9313
072CC010000 7002
072CC020000 0
072DD010000 23999
072DD020000 0
072EE000000 0
073 A010000 0.4125
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 2
074 B000000 630
074 C000000 564237
074 D000000 30873
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 9832
074 M000000 164
074 N000000 605738
074 O000000 0
074 P000000 122
074 Q000000 0
074 R010000 188885
074 R020000 0
074 R030000 0
074 R040000 606
074 S000000 0
074 T000000 416125
074 U010000 56968
074 U020000 0
074 V010000 7.30
074 V020000 0.00
074 W000000 0.0000
074 X000000 28296
074 Y000000 216597
075 A000000 0
075 B000000 423571
076 000000 7.13
077 A000000 Y
<PAGE> PAGE 10
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 Y
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 Y
077 Q030000 N
078 000000 N
080 A000000 RELIANCE INSURANCE COMPANY
080 C000000 8000
081 A000000 Y
081 B000000 4
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 Y
086 A010000 0
086 A020000 0
086 B010000 3587
086 B020000 25240
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
087 A010000 COMMON STOCK
087 A020000 448916106
087 A030000 HTA
088 A000000 N
088 B000000 N
088 C000000 N
088 D000000 N
<PAGE> PAGE 11
SIGNATURE JOSEPH SULLIVAN
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000890336
<NAME> HYPERION 1997 TERM TRUST INC.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 593928490
<INVESTMENTS-AT-VALUE> 595739634
<RECEIVABLES> 9832253
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 166496
<TOTAL-ASSETS> 605738383
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 189612991
<TOTAL-LIABILITIES> 189612991
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 549143512
<SHARES-COMMON-STOCK> 56968027
<SHARES-COMMON-PRIOR> 60555227
<ACCUMULATED-NII-CURRENT> 11989445
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (146818709)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1811144
<NET-ASSETS> 416125392
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 38077491
<OTHER-INCOME> 0
<EXPENSES-NET> 12845669
<NET-INVESTMENT-INCOME> 25231822
<REALIZED-GAINS-CURRENT> (5072568)
<APPREC-INCREASE-CURRENT> 7001509
<NET-CHANGE-FROM-OPS> 27160763
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (23998700)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 3587200
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (22077472)
<ACCUMULATED-NII-PRIOR> 10756323
<ACCUMULATED-GAINS-PRIOR> (141746141)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1003190
<INTEREST-EXPENSE> 9773717
<GROSS-EXPENSE> 12845669
<AVERAGE-NET-ASSETS> 423602985
<PER-SHARE-NAV-BEGIN> 7.24
<PER-SHARE-NII> 0.45
<PER-SHARE-GAIN-APPREC> 0.02
<PER-SHARE-DIVIDEND> (0.41)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.30
<EXPENSE-RATIO> 0.73
<AVG-DEBT-OUTSTANDING> 180312864
<AVG-DEBT-PER-SHARE> 3.11
</TABLE>
EXHIBIT 99.1 IN REFERENCE TO ITEM 77.B
July 17, 1997
To the Board of Directors of
Hyperion 1997 Term Trust
In planning and performing our audit of the financial statements of
Hyperion 1997 Term Trust (the "Trust") for the year ended May 31,
1997, we considered the 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.
Our consideration of the Fund's internal control structure was more
limited than would be necessary to express an opinion on the internal
control structure taken as a whole.
The management of the Trust is responsible for establishing and
maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of an
internal control structure are to provide management with reasonable,
but not absolute, assurance that assets are 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,
projection of any evaluation of the structure to future periods is
subject to the risk that it may become inadequate because of changes
in conditions or that the effectiveness of the design and operation
may deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure
that might be material weaknesses under standards established by the
American Institute of Certified Public Accountants. A material
weakness is a condition in which the design or operation of the
specific internal control structure elements does not reduce to a
relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving the
internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined
above as of May 31, 1997.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, NY 10036
Exhibit 99.2 - In Reference to Item 77. E
Legal Proceedings
On June 9, 1997, the Supreme Court of the United States denied the
petition for a writ of certiorari in Hyperion Securities Litigation,
(under the name Marilyn Okley, et al v. Hyperion 1999 Term Trust, Inc.,
et al), and no further appeals are possible.
This denial means that the order and judgment of the district court
dismissing the complaint with prejudice is now final, and is not subject
to any further review, and that the action is at an end.
