Is this what you want to do?
iOS: Understanding Personal Hotspot
Use Bluetooth to tether your iPhone, iPod touch, or iPad
How to Connect an iPad to an iPhone Via Bluetooth Tethering
Get a Mi-Fi http://en.wikipedia.org/wiki/MiF
BTW - Your questions states an iPad 1, however, your profile shows iOS 7.0.2. The max iOS for an iPad 1 is iOS 5.1.1.