Personal Hotspot in iPad 2

iPad 2 does not support hotspot without a jailbreak. Here you can get an official confirmation of this:

http://support.apple.com/kb/HT3574

If you already have or if you are ready to do jb, you can use third-party applications to solve this problem.

1. PDAnet (Free Trial or $16 or $29)

PDANet really is easy and simple to use. You simply switch on the kind of tethering you would like, connect on your pc, and you are ready. You can include WEP file encryption for your Wi-Fi connection if you would like some added security. Most significantly, you are able to hide your tethering activity out of your company. This really is huge if you are trying to get away from having to pay their absurdly high tethering costs.

The greatest disadvantage to PDANet is it needs a desktop client if you are using USB mode. PDANet also offers a high cost. Presently it's being offered for $16, but normally it will cost you $29. Obviously you can still use PDANet without having to pay if you do not visit any secure internet sites, but that likely forbids you against being able to access the majority of what you will want to access.

2. MyWi (Free Trial or $19.99)

MyWi also needs a jailbreak, but costs a little less while offering a bit more customizability. It's an excellent application for tethering, and when it were not for PDANet's capability to hide tethering activity out of your company it's what I'd be suggesting rather.