Can I Create A Hotspot With My iPhone 4 To Use For iPod Touch?

I'm considering signing up for the tethering plan with AT&T.
My main purpose would be to create a hotspot for my iPod Touch.
I use my iPod Touch at work using Keynote.  I would like the ability to download my Keynotes via Dropbox on my iPod Touch.
Can I create a hotspot with my iPhone 4 so my iPod touch would have access to the internet?

Yes.

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    iPod Touch (5th Gen) : Max support iOS version is 7.0.6

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