Creating a terminal device for interprocess communication

I'd like to know how to create a terminal device to simulate a piece of hardware connected through a serial port. Basically, tty device with a certain baud rate that can be read from and written to between two processes. From what I understand, a psuedo-terminal is what I'm looking for, and the makedev can apparently make one. I've also found the following set of instructions: su to root cd /dev mkdir pty mknod pty/m0 c 2 0 mknod pty/s0 c 3 0 ln -s pty/m0 ttyp0 ln -s pty/s0 ptyp0 chmod a+w pty/m0 pty/s0 Is there a better way of making pseudo-terminal, or is this pretty much the standard way of make one in the shell?