Yes, $f(x)^2$ is defined and is also bounded.
To see that it is defined, note that $f(x)^2 = f(x) \cdot f(x)$. Since $f(x)$ is defined for all $x \in [a,b]$ and since multiplication of two real numbers is defined, we have $f(x)^2$ is defined.
To see that it is bounded, since $\vert f(x) \vert \leq M$ for some $M \in \mathbb{R}^+$, we have $f(x)^2 = \vert f(x) \vert^2 \leq M^2$.